HOT TOPICS LIST
- MACD
- Fibonacci
- RSI
- Gann
- ADXR
- Stochastics
- Volume
- Triangles
- Futures
- Cycles
- Volatility
- ZIGZAG
- MESA
- Retracement
- Aroon
INDICATORS LIST
LIST OF TOPICS
PRINT THIS ARTICLE
by James Kupfer
Have commodities finally seen an intermediate-term bottom?
Position: Accumulate
James Kupfer
Mr. Kupfer is a market professional and amateur stock market commentator. Disclosure: It is likely that Mr. Kupfer has or will enter a position in any security he writes about.
PRINT THIS ARTICLE
CHART ANALYSIS
Commodity Bottom Finally Here?
01/12/09 12:51:10 PMby James Kupfer
Have commodities finally seen an intermediate-term bottom?
Position: Accumulate
| For the last few months, I've been searching in vain for an elusive bottom to the massive fall in the prices of most commodities. At last, commodities have recently made a bottom that suggests that the downward move may possibly be over for now and that traders should be playing commodities to the upside. However, commodity bulls are far from out of the woods yet. |
|
| FIGURE 1: CRB, WEEKLY. This may be an intermediate-term bottom for commodities, or another chance to short. |
| Graphic provided by: Wealth-lab. |
| |
| Looking at the weekly chart of the CRB in Figure 1, you can see a downward sloping trendline that started at the commodity peak last year. The trendline touched in multiple spots and has remained valid to date. In fact, prices just barely crossed over the trend line this week before quickly retreating. In addition to this bearish action, both daily and weekly stochastics are strongly overbought. |
| On the bullish side, for the first time since the peak in July 2008 commodities have managed to make a series of higher highs and higher lows on a weekly basis. As you can see, I've drawn two support lines based on the recent price action. Commodities are likely to correct further to work off some of the overbought levels for stochastics. After that, they may present a very positive buying opportunity with a stop at the December bottom. |
Mr. Kupfer is a market professional and amateur stock market commentator. Disclosure: It is likely that Mr. Kupfer has or will enter a position in any security he writes about.
Click here for more information about our publications!
Comments
Date: 01/13/09Rank: 3Comment:
Request Information From Our Sponsors
- StockCharts.com, Inc.
- Candle Patterns
- Candlestick Charting Explained
- Intermarket Technical Analysis
- John Murphy on Chart Analysis
- John Murphy's Chart Pattern Recognition
- John Murphy's Market Message
- MurphyExplainsMarketAnalysis-Intermarket Analysis
- MurphyExplainsMarketAnalysis-Visual Analysis
- StockCharts.com
- Technical Analysis of the Financial Markets
- The Visual Investor
- VectorVest, Inc.
- Executive Premier Workshop
- One-Day Options Course
- OptionsPro
- Retirement Income Workshop
- Sure-Fire Trading Systems (VectorVest, Inc.)
- Trading as a Business Workshop
- VectorVest 7 EOD
- VectorVest 7 RealTime/IntraDay
- VectorVest AutoTester
- VectorVest Educational Services
- VectorVest OnLine
- VectorVest Options Analyzer
- VectorVest ProGraphics v6.0
- VectorVest ProTrader 7
- VectorVest RealTime Derby Tool
- VectorVest Simulator
- VectorVest Variator
- VectorVest Watchdog
Join
us on Facebook
Follow
us on Twitter
DEPARTMENTS: Advertising | Editorial | Circulation | Contact Us | BY PHONE: (206) 938-0570
PTSK — The
Professional Traders' Starter Kit
Home — S&C
Magazine | Working
Money Magazine | Traders.com
Advantage | Online Store | Traders’ Resource
Add a Product
to Traders’ Resource | Message
Boards | Subscribe/Renew | Free
Trial Issue | Article
Code | Search
Copyright © 1982–2024 Technical Analysis, Inc. All rights reserved. Read our disclaimer & privacy statement.