Commodities: Financial Indicators You Cannot Ignore | The Canadian Technician

The commodities tried to rally however stalled this week at essential technical places.

For instance the DBC weekly chart does not look superb.

• The SCTR is plummeting after 1.5 years of energy.
• 1st purple candle since October began.
• Relative energy in purple breaking
• No quantity
• PPO momentum proper at zero and struggling to go greater.

Taking a look at XOP

Oil exploration firms are struggling to take out the spring highs. Now we have been right here for 3 weeks.

• Testing a previous excessive and struggling. Not unusual, however hardly euphoric based mostly on what the indexes are doing. DIA is up 20% off the lows.
• First blue candle at the very least hints at a weakening development.
• No quantity coming in
• PPO dropping upside momentum

I’d say that is nonetheless a powerful chart however based mostly on the DBC chart above it’s value watching carefully.

I used to be so thrilled to see copper escape, solely to see copper miners bang their heads on the 40 WMA. Essential resistance till damaged. SCTR rating failing to carry up. The PPO is beneath zero and must proceed to speed up greater.

For me, it’s beginning to look quite a bit much less doubtless that commodities can soar. One week does not make a development. I am going to have much more on my weekend e-newsletter. Critically necessary that we perceive the financial indicators like housing, copper, oil, together with commodities usually. If you need to see what we provide, be happy to strive a subscription at $7 at Ospreystrategic.org. It’s going to allow you to take a look at our previous picks and newsletters as nicely.