Head & Shoulders Topping Pattern Taking Place In Beef Prices?
Unless you live under a rock, you are well aware that beef prices are much higher at the store. Feeder cattle prices are up 25% in just the past four months!
Could a head & shoulders topping pattern be forming in the cattle market? Possible!
If this pattern read is correct, the neckline is being tested right now. To prove this pattern, the neckline needs to fail as support. Should the neckline fail as support, beef prices should end up being lower in time!
See us at Kimble Charting Solutions.
Commodities-Time To Catch A Falling Knife?
Commodities ETF DBC has been a little soft over the past seven weeks, losing around 7% in price (-2% YTD), while the S&P 500 has been flat (lower chart).
The top chart is the TR Continuous Index, which finds itself testing dual support, one of them being a 14-year rising support line.
This index has been soft for the past four years, while the stock market has continued to rally. In the big picture, what happens here could be very important for commodities overall direction in the months to come.
Some believe in the idea of buying low and selling higher. Is now the time to “Catch A Falling Commodities Index???”
Silver…Most Important Support Point In 10-Years?
Silver has lost almost two-thirds of its value over the past three years. This decline has Silver hitting a 10-year support line inside of a three year falling channel.
Joe Friday….Very important that Silver holds at this long-term support line!!!
I am interested in buying some Silver should support break and it reaches the $15 zone.
Rising Interest Rates, Tell Me About Them (Update)
The “No- Brainer” can’t miss trade coming into the first of this year was that interest rates were going to rise. 90 Days ago I shared that bond prices were breaking out, discussed in the “Tell Me About Rising Rates” post (See Here)
I shared with Members numerous charts about a rate high/bond price low at the first of this year. One of the key reasons to establish a long bond position was due to this…Interest rates had the largest 18-month rally in the past 30-years, up 50% more than the seven largest rallies in the past 30-years!
Market watch reported earlier this year that 100% of economist predicted that rates would rise. Wonder how that prediction has worked out? Year to date, TLT is up almost twice as much as the S&P 500.
The chart above highlights that the yield on the 10-year note has been falling since the first of the year and is now on rising support. IF support breaks, the next key support line comes into play around 15% below current levels.
If yields break support, would they be sending a message about the strength of the global economy? This support line is important to more than just bonds I feel.
See More At Kimble Charting Solutions