Friday, January 16, 2015

CRB Commodities Weekly Chart Crash Into Bear Market

Commodities are in complete collapse paving the way to global deflation. Since summer time, the CRB has dropped from 315 to 220, a drop of 95 points, -30%. The stochastics are oversold and positively diverged so a bounce will occur but the other indicators are weak and bleak wanting to see lower lows in price after the bounce occurs, on this weekly basis. Long-term the sideways 200-250 channel range may be in play all year long.

The CRB daily chart is set up with possie d and agreeable to a bounce along with the stochastics above. The drop out of the red rising wedge sure was dramatic. Price is extended way below the moving averages so a mean reversion higher is needed. So most of the worst has occurred although the door remains open to 200 as the year plays out. A bounce to 230 is a reasonable expectation in the very near term.

You can adapt this same technical analysis to crude oil and the WTIC, USO and BNO charts. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

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