Commodities Update

The commodities markets are correcting right now, which means my concern about agricultural and energy based inflation my be easing. Let's take a look at the charts to see what they say.



On the daily agricultural price chart, notice the following:

-- Prices have broken through two support levels

-- Prices have broken through two upward sloping trend lines.

-- The 10 day simple moving average (SMA) has moved through the 50 day SMA

-- The 10 and 20 day SMA are both heading lower

-- Prices are now below the 50 day SMA



On the weekly agricultural price chart, notice that

-- Prices are at a crucial technical level. While they are still technically in an uptrend a move through this level will indicate a break of the trend.



On the daily energy price chart, notice the following:

-- Prices broke the trend line started in early February

-- Prices are consolidating in a triangle pattern right now



On the weekly energy price chart, notice the following:

-- Prices are still in an uptrend that started at the beginning of 2007

-- Prices are currently consolidating in a triangle consolidation pattern.