Commodities are starting to look interesting

  • UKOil
    (${instrument.percentChange}%)
  • WHEATF
    (${instrument.percentChange}%)

Thomson Reuters/Jeffries CRB Index


Source: www.tradingview.com

Commodities are starting to look interesting again. This after a subdued period for the sector. We note that between 21 June 2022 (first red vertical) and 3 July 2023 (second red vertical), the Thomson Reuters/Jeffries CRB index moved in a southeasterly direction. During this period, the index's RSI remained largely under 50 (blue rectangle), which is the bearish side of the indicator.

However, the technical makeup of the index is improving. The index's green 5-week EMA crossed above its orange 10-week EMA (blue arrow) and its RSI pushed above 50 (green ellipse), which is the bullish side of the oscillator. If the EMAs develop angle and separation to the northeast, it will be regarded as a bullish development. Moreover, the longer the RSI remains above 50, the greater the momentum support for commodities in general.

Oil and wheat are contributing positively to the index's technical picture.

FXCM's UKOil CFD


Source: www.tradingview.com
- UKOil is trading above its black down sloping trendline.
- Its green 5-week EMA has bullishly crossed above its orange 10-week EMA (top black ellipse).
- Its RSI has moved above 50 (bottom black ellipse). This is the bullish side of the indicator.
- If the EMAs develop angle and separation to the upside and the RSI maintains above 50, it will be regarded as bullish developments.

FXCM's WHEATF CFD


- WHEATF is trading above its black down sloping trendline.
- There is overhead resistance at the 800 level.
- Its green 5-week EMA has bullishly crossed above its orange 10-week EMA (top black ellipse).
- Its RSI has moved above 50 (bottom black ellipse). This is the bullish side of the indicator.
- If the EMAs develop angle and separation to the upside and the RSI maintains above 50, it will be regarded as bullish developments.

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Image by Dylanna Fisher from Pixabay

Russell Shor

Senior Market Specialist

Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.

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