Commodities Ready to Move Back Higher

Commodities have been moving lower but they look to be at a spot where that drop may be over and a reversal in store. Could this be a sign of inflation about to creep back up? Perhaps that is part of the Treasury bond yield back up that could be confusing the moves on Treasuries for a risk on sell off. Or maybe these are just fake out moves, since the Simple Moving Averages (SMA’s) are starting to roll lower and cross. Things to think of while you take a look, but there may be an opportunity here.

Coffee, $KC_F, has been trending lower since May with support illustrated in blue above. The latest touch of the line and move higher may signal a turning point. The Relative Strength Index (RSI) is also turning higher and the Moving Average Convergence Divergence (MACD) indicator is leveling. A move back above 2.40 could signal another wave higher.

Corn, $ZC_F, printed a doji last week and is confirming it higher this week. It held support at the 590 trend line and has a RSI that is moving higher and a MACD that is improving.

Soybeans, $ZS_F,also bounced off of support at 1150 at the gap confirming a Morning Star candle from last week higher. The RSI has moved sharply higher here as well and the MACD is improving.

Wheat, $ZW_F, is the laggard, looking to confirm a doji last week and an Inverted Hammer this week at support from June.. If it does with a move higher Thursday ten it will join the party. The RSI has started to turn higher and the MACD is level. Perhaps this is the opportunity.

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