Last Thursday we noted that oil was trading at a key inflection point where it would either fail at or break above resistance. As shown below, oil has broken above this inflection point in the last two days, but it has hardly been a move worth getting excited over. With oil and the stock market trading so closely together in recent months, the ability for oil to forcefully break out will most likely depend on which way stocks move in the next week or so.
Below we provide our trading range charts of 8 other key commodities. Moves above or below the green zone are considered overbought or oversold. As shown, precious metals are all trading right in the middle of their trading ranges, and the ranges themselves are tightening up as the volatility contracts.
While oil has been hurting consumers' wallets in recent months, food commodities have been dropping in price. Corn and wheat are both trending downward and have broken all levels of support.
Comments