While inflation continues to dominate the news headlines (and consumer concerns), I think it’s important to highlight an interesting development in the commodities complex.
And a potentially positive development!
Today we take a look at a long-term “monthly” chart of the TR CRB Commodity Index.
As you can see, this key Commodity Index peaked at its 61.8% Fibonacci level last year before reversing lower. This produced a “monthly bearish reversal” pattern. And the subsequent price action produced a bearish wedge pattern.
The pattern is now testing critical price support. Note that a similar pattern (at similar price support) produced a 50% decline from 2014 to 2020!
So even though inflation seems to be in the headlines, commodities could be creating another bearish pattern that leads to lower prices… that would take the edge off inflation worries. Stay tuned!
This post was originally written for See It Markets.com. To see the original post CLICK HERE.