As we have done with global markets and US sectors, below we highlight the historical trading areas of ten major commodities. Our trading area is two standard deviations above and below the commodity's 50-day moving average. When the price of the commodity moves above or below this trading area, it is considered overbought or oversold. The trading area can also be used as a measure of volatility. A narrow area means the commodity has traded in a tight channel over the past 50 days, while a widening of the area represents an increase in upward or downward price movements.
Currently, coffee and corn are trading at the bottom of their trading areas, while platinum, copper and natural gas are near the top. Investors may also be interested in our list of commodities ETFs.
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