Commodity Blog

Posts Tagged ‘moving average’

Michael Hewson of CMC Markets speaks about the confirmation of the so called “death cross” in the broad commodity index chart. It’s a cross of the 50-day moving average below 100-day moving average. The pattern was followed by the bearish trend 3 times out of 4 during the last 10 years. The ”death cross” pattern is also confirmed by the head-and-shoulders pattern on the weekly chart of the commodity index.

James Hughes of CMC Markets speaks about the moving average cross forming in the commodity index chart. It has a potential of a signal for the further decline of the commodities. The index itself has already crossed the 200-day moving average from above, forming a strong bearish wave. But a bearish cross of 200-, 100- and 50-day moving averages would confirm the pessimistic analysis.