Wednesday, November 19, 2008

Wednesday Commodities Round-Up



Click for a larger image

Notice the following on the weekly chart:

-- Prices are at or near their lowest level in three years

-- All the SMAs are moving lower

-- The shorter SMAs are below the longer SMAs

-- Prices are below all the SMAs

BUT

-- The RSI is oversold, and

-- The MACD is oversold



Notice the following on the daily chart:

-- All the SMAs are moving lower

-- The shorter SMAs are below the longer SMAs

-- Prices are below all the SMAs

-- Prices have been dropping for nearly 5 months

BUT

-- The MACD is rising and

-- the RSI is bordering on oversold territory

Bottom line: The market is technically oversold and wants to rally