GTX Commodities Weekly Chart Oversold Falling Wedge Positive Divegence

Commodities have been slapped silly over the last year. This same technical analysis can be used for the CRB an identical chart. Price popped from the positive divergence in August and did not have to come back down again chart-wise, however, the central bankers are the markets, and since the ECB crushed the euro with promises of more QE, the dollar ran higher sending commodities lower. The possie d, oversold conditions and falling wedge are all bullish indicators so the expectation is for prices to recover going forward.

If commodities rise, the US dollar index must be stabilizing and even expected to drift lower rather than higher as the universal consensus expects. The pink box shows that the downward trend does remain in play. A relief rally is anticipated but commodities will likely head more sideways for months to come. Long plays such as DBA or ANDE can be considered going forward. No rush to enter long now simply place them on your long play watch list. 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.