Wednesday, August 26, 2009
Wednesday Commodities Round-Up
The weekly agricultural prices chart is weakening. First, notice all the EMAs are now moving lower. The shift has been subtle but it's clearly there. EMAs smooth the price action so we can see in real time what the current short, medium and long-term trend line looks like. Here, all the trends are now moving lower. In addition, prices are now below the trend line that started in late 2008. That's negative as well.
On the daily chart we see a very neutral situation. First, prices and EMAs are in a ntight range indicating a clear lack of direction While prices are still above a trend line, most of the price action has been to hug the line; an attempt to move above it could not be sustained. Clearly, traders are wondering where to move prices next.