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Look for Commodity Weakness

By Jim Wyckoff

About this article:
Early shorter-term technical and chart clues in many commodity futures markets have begun to suggest major price bottoms are in place. Fledgling price uptrends are under way on the daily price charts in many commodity futures markets, including cattle, soybeans, cotton, coffee, orange juice and copper. However, as seen on the monthly chart for the Continuous Commodity Index, a big and bearish pennant pattern looms. And on the weekly CCI chart, a bearish symmetrical triangle pattern is still in play. Continuous Commodity Index Chart -- Monthly FutureSource.com and TradingEducation.com The CCI is a basket of 19 major raw commodity futures prices rolled into one composite index. It's an excellent gauge of the general trend in commodity prices and commodity price inflation. The monthly and weekly CCI charts suggest the commodity market bulls still have more work...

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