Inflation Is Real and Commodities Are Showing This
Inflation fears are getting real yet there appears to be no sign of the money printing ending as a +3 trillion dollar budget agreement has been reached this week in the US, and the unbelievable rally in commodities since March of 2020 is a manifestation of this.
Its been higher higher after higher high and it appears to be attempting to put in another lower high after consecutive lower highs the last 16 months as well.
Should the upward sloping green trend line serve as support once more, look for a retest of the PDBC's all time high at roughly 2% from where we are currently to the upside.
If the ETF can find support above that level, a 10% move to the top of the channel could be instore.
If the trend breaks, look for support at $19.35. Ultimately, the bears would want to see this thing break out below $18.91 to confirm a bearish reversal of commodities.. a feat that appears to be a tall task given the current state of affairs with the macros.
Its been higher higher after higher high and it appears to be attempting to put in another lower high after consecutive lower highs the last 16 months as well.
Should the upward sloping green trend line serve as support once more, look for a retest of the PDBC's all time high at roughly 2% from where we are currently to the upside.
If the ETF can find support above that level, a 10% move to the top of the channel could be instore.
If the trend breaks, look for support at $19.35. Ultimately, the bears would want to see this thing break out below $18.91 to confirm a bearish reversal of commodities.. a feat that appears to be a tall task given the current state of affairs with the macros.
