Commodities continue to weaken again this week. Whether it was Copper or Aluminum, Natural Gas or Gasoline, it was another tough week for the commodity arena. The $CRB closed below the midpoint on the week and reversed the two week counter trend rally. The index also closed at a major horizontal support/resistance level around 190.5.
Both Oil and Natural Gas pulled back.
Gold continues to hold at support. A few things suggest this is worth watching but it continues to be a setup. A move above $1225 would probably launch a change in trend for Gold. The Full Stochastic turning up is a nice start to the signal.
Here is the Commodities countdown video for the week.
Attached are some recent videos I have posted. The Final Bar.
The Canadian Technician. While I was becoming more bullish when I recorded this on Monday August 26th, the Canadian market has since given back its breakout and closed at fresh three month closing lows. I would have to interject a note of caution on the failed breakout created. A false breakout is usually followed by a larger move in the other direction. The real problem is the Canadian market is back to prices we saw in May while the US markets are significantly higher.
If you are missing intermarket signals in the market, follow me on Twitter and check out my Vimeo Channel often. Bookmark it for easy access!
Greg Schnell, CMT, MFTA
Senior Technical Analyst, StockCharts.com
Author, Stock Charts for Dummies