Commodities

Gold Sells Off This Week; Is The Rally Over For Commodities?

Published

3 years ago

June 17, 2021

Sir Chartist

Commodities have seen selling pressure the past few days. Here is a glimpse of what has been going on:

Lumber has sold off around 44% from its recent peak in just over a month
Soybeans, Corn and Wheat have sold off the past week with four plus red days in a row
Copper has sold off around 10% from its recent peak in just over a month
Silver came crashing down this week from around $28.20 to $27.30
Gold has seen accelerated selling as well as it dropped around a 100 points in a just over a week

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Gold Breaks Down Below Key Trendline

From April’s low Gold saw a steady uptrend of higher highs and higher lows. As Gold moved higher so did the 50 day moving average as well. Even though the chart is showing a key technical event nearing, a golden cross, selling has started to become more accelerated.

Looking at the chart you can see that earlier this week that it broke down below the trendline and has been selling ever since.

The FOMC decision was today and they did not change rates. This could of been seen as bullish for commodities as inflation is more real than ever and lower rates could accelerate inflation and cause demand to flood into commodities as the US Dollar loses its value. Gold saw selling despite the decision by the FOMC.

Not only did Gold sell off today but, Silver, Copper and Grains all closed red today.

What Is Next?

For now, Gold has held the 200 day moving average. The 200 day moving average is one of the most widely used technical analysis indicators by investors and traders. As Gold continues to trade above both the 50 day moving average and the 200 day moving average it could be seen as bullish and this could attract demand once bias confirms its strength.

Golden Cross

Chart Courtesy of StockCharts.com

The last time Gold had a Golden Cross occur was back in 2019. Gold then proceeded to rally from around $1300 to around $2100 after this occurred.

A Golden Cross is when the 50 day moving average crosses over the 200 day moving average to the upside.

Referring to the chart you can see the illustration comparison between the bottom left of the chart and the top right of the chart.

Follow The Author On Twitter: @ChartBreakouts

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Related Topics:Commodities Gold Gold Breaking Down Precious Metals

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Commodities

Commodities: Soybeans Is Trading Near A Key Level

Published

2 years ago

May 22, 2022

Austin Daniels

Grains have saw a BOOM and as commodities tend to trade, we should expect a BUST, right? Well maybe that is not the case yet because Soybeans in trading near a very important level.

Soybeans is trading over 100 points off of Mays low as it is inching closer to the key $1,800 area.

As you can see the chart above, you can see that around 2012 Soybeans was trading near the current levels it is trading at.

This key area is going to be $1789 and above this level could be a nice breakout potentially.

Right now Soybeans currently trades at $1705 but, it has been consolidating for a few weeks now as it has traded in a range around $1600-$1700.

Commodities

Wheat Breakouts Out Of Channel…AGAIN

Published

2 years ago

May 16, 2022

Austin Daniels

Wheat Futures saw a gap up as futures opened last night.

This came after it broke out on Thursday and it has gained momentum Friday followed by a gap up on Sunday.

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Commodities

Soybeans Trying to Breakout Over $1600

Published

2 years ago

February 18, 2022

Austin Daniels

It has been quite the ride for Soybean traders the past few months as it has gone from $1600 back down to $1200 and now back at $1600.

The question is will it be a double top or will it actually breakout above $1600 this time.

First, I want to give credit to our very own @ChartBreakouts on twitter for calling this breakout via twitter.

#SOYBEANS is trying to breakout. pic.twitter.com/qrBkbmv2bD
— Sir Chartist (@ChartBreakouts) December 16, 2021

The Chart

Since Soybeans had bottomed around $1200 it had broken out and not looked back. As you can see this current area is very strong resistance from a few months back and all eyes will be on the $1600 area.

Earlier this week Soybeans did try to gain momentum over $1600 but that was not long lived and in result it fell back below $1600.

This morning Soybeans is currently trading around $1599 and is on watch today to see if demand can come into it and push it higher