Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

Here's Why Commodity Prices May Decline Even Further

Published 17/02/2023, 22:47
Updated 09/07/2023, 11:31

Commodity prices have skyrocketed over the past few years, but today we put the move higher into perspective.

And we do this by looking at a long-term monthly chart of the Thomson Reuters Equal Weight Commodity Index.

Equal Weight Commodity Index Monthly Chart

As you can see, commodities have been trading within a wide, falling price channel. The big rally from 2020 to 2022 saw the Equal Weight Commodity Index go from the bottom of the channel to the top at (1). That top was also marked by the 61.8% Fibonacci retracement.

Commodities have now declined nearly 20% from roughly one year ago and are testing important near-term price support at (2). If this index breaks below support here, it could mean a bigger decline in commodity prices is underway. Stay tuned.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.