Investing
Haven
No Result
View All Result
Monday, June 27, 2022
  • Login
  • Premium Services & Login
  • 2022 Forecasts
  • Commodities & Gold
  • Stocks
  • Crypto
  • Mission 2026
Crypto investing >>
Investing
Haven
  • Premium Services & Login
  • 2022 Forecasts
  • Commodities & Gold
  • Stocks
  • Crypto
  • Mission 2026
No Result
View All Result
InvestingHaven
No Result
View All Result

Are Global Commodity Markets About to Make a Top?

by Taki Tsaklanos
May 27, 2022
in Commodities & Gold
0
commodities investing
1.9k
VIEWS
Share on FacebookShare on Twitter

Since the global commodity markets bottomed in 2020, we saw a parabolic rise in the price of commodities. This rise fueled inflation levels and for most investors today, understanding if the move in commodities is exhausted or not is a top of mind.

It is a particularly important question since we know how commodities, the US dollar, bonds, yields and the volatile equities markets are all intertwined. So a top in one market could signal the bottom in another. Hence why stock market investors around the world are currently watching the price action in this chart: The Commodity Research Bureau Index, also referred to as the $CRB Index.

commodities topping

The CRB Index Long Term Chart

This long term $CRB index chart, 15 years exactly, indicates the following:

The price is currently hitting a resistance area between $300 and $370. How the price will act at these levels could indicate if commodities in general are likely to continue their run or roll back here.

A parabolic rise in the commodities index started in 2021 and this section of the chart is extremely important to understand what might be about to happen. When a parabolic arc breaks, you can easily see a decline of 65% to 75% in the price. So unless we see a quick pullback and continuation in the uptrend, this setup if rejected at the above resistance levels could possibly signal the top in commodities and a reversal for equities.

What’s next for the global Commodity markets?

The monthly CRB index chart below is an important indicator that what we will be watching to understand what could happen next in both the commodity markets and equities markets. It is important that we don’t consider it in isolation but rather in conjunction with our leading indicators. That is the only way to draw actionable insights.

The chart below shows the uptrend in the $CRB is strong and valid. The price however is approaching overhead resistance levels so investors have to be ready for either scenarios. At this point, we have 3 possibilities:

  • An upside breakout will be spectacular to say the least. Resistance 1 will be $315 then the true breakout at $370
  • Should the price break below $300 (tight stop) or $270 for those with a higher risk tolerance, we will have a parabolic and you do not want to be caught in the downwards movement that will likely follow.
  • The 3rd scenario is a range bound price action between $300 and $370 before the price chooses a direction. Likely up given the preceding solid uptrend.

commodities weekly chart

A closer look on the daily shows how there is already a resistance in the $315 area. The higher lows however indicate that the dips are consistently getting bought. The next few days should bring more clarity as we approach the apex of the triangle.

commodities daily chart

 

Written by hdcharting, reviewed by Taki Tsaklanos

 

  premium service trade alerts   premium service trade alerts   premium service crypto teaser  
Receive top notch forecasts for free.

*We hate spam as you do.

Taki Tsaklanos

Taki Tsaklanos

Taki has +15 years of experience in global markets. His methodology is unique and effective, yet easy to understand; it is based on chart analysis combined with intermarket / fundamental / sentiment analysis. His work appeared on major financial outlets like FinancialSense, MarketWatch, ... Email: taki.tsaklanos@gmail.com. Twitter: twitter.com/investinghaven

Latest

lithium mining stocks

Lithium Outlook 2022 And Sector Darling Lithium Americas

June 26, 2022
inflation

Does This One Inflation Indicator Forecast A Lower Inflation Rate?

June 26, 2022
btc price forecast

Bitcoin’s Bounce: Does It Have Legs Or Is A Re-Test Of The Lows Underway?

June 26, 2022
silver bullish

A Tradeable Silver Price Chart

June 25, 2022

Connect with InvestingHaven

Receive top notch forecasts for free.

*We hate spam as you do.

Categories

  • Premium Services & Login
  • 2022 Forecasts
  • Commodities & Gold
  • Stocks
  • Crypto
  • Mission 2026

Site Navigation

  • RSS Feed
  • About us
  • Sitemap
  • Privacy & Disclaimer
  • Terms of Service
  • Contact Us
Investing
Haven

Top notch forecasting with gold price forecast, many stock predictions, cryptocurrency charts. Many investing tips and crypto market analysis.

Copyright © 2021 Investing Haven

No Result
View All Result
  • Premium Services & Login
  • Premium Investing Service
  • Premium Trading Service
  • Premium Crypto Service
  • 2022 Forecasts
  • Markets & Stocks
  • Commodities & Gold
  • Crypto Markets
  • Mission 2026

Copyright © 2021 Investing Haven

Login to your account below

Forgotten Password?

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In