Many analysts follow the Baltic Dry Index ($BDI) as a gauge on the possible future pathway of commodity prices. The Index is a survey of what it would cost to ship certain raw materials by sea, which can sometimes be a leading indicator of commodity prices (supply and demand) themselves. Let’s look at the Index…
There is a multi-swing positive momentum divergence and perhaps a new set of higher highs and higher lows developing in the CRB (Commodity) Index – but might this lead to a reversal in price? Let’s look: $CRB Commodity Index Daily: We have a confirmed and persistent downtrend in price as evidenced by lower lows and…
Commodities across the board have taken massive falls throughout 2008. Let’s take a look at a possible Elliott Wave Analysis for the monthly and daily $CRB Commodity Index to see if we can place these moves within a broader structure. CRB Index Monthly : This structure takes price from the 1999 lows as the start…
There could be a curious inflection in the current price movement of the Commodity Index ($CRB) and the US Dollar Index ($USD), which could make or break the current trends in place. Let’s see what I mean. The US Dollar Index: The US Dollar Index has experienced a lengthy downtrend, has paused, consolidated, formed higher…
Some traders imagined new life for the US Dollar Index, and while that may be the case long-term, in the short-term, the Index has created a false breakout only to roll back to the downside and could make new lows. Let’s look at the daily chart: While a positive momentum divergence did precede the breakout…
The US Dollar Index staged an impressive rally on the daily charts, but is currently failing to surmount resistance via the strong 20 period moving average on the weekly chart. Notice how the falling 20 period moving average (exponential) has served significantly as overhead resistance, thwarting any rallies ever since late 2006. Price recently tested…
In a twisting reversal of fate, the US Dollar Index is coming off new lows after building a potential base while gold prices are coming off new highs after a climax top and potential top formation. The intermarket relationships are in full force. Let’s look! Notice the ‘mirror image’ occurring in this post. That’s because…
This week, the US Dollar Index has recovered slightly, and price finds itself above key resistance and attempting a new swing high. What might this mean for commodities? First, the US Dollar Index is breaking above a consolidation pattern, which was preceded by a positive momentum divergence. Should price break the $73 level, the next…