Commodities as a whole are poised to make a large move soon as the recent range has narrowed substantially. The daily Bollinger Bands, a series of higher lows since December and 50 dma all seem to be converging on $20. It seems to me that a large retracement of the 2008 decline may be in order after support has shown up in the low $19s. Commodities could also break lower but I'd be more scared of a false breakdown than missing the decline. It just seems to me that now would be an appororiate time for the dollar to weaken against tangible assets (commodities) with all the money being printed in Washington. We shall see...
1 comment:
It was coiled alright, but the spring shot the other way!
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