Commodities are falling, but for how long?
It will be possible? Will we see the formation of the ABC pattern?
-Assuming that many commodities are undergoing strong corrections, is it possible that animal proteins will fall even more?
-After two straight years of increases, several commodities are going through this process, including animal protein. See below the graph of the future fat ox!
-The big question is: If commodities are plummeting around the world, how can we explain that global economies are recovering? And what's worse, they really are recovering! Here we have yet another paradox to be answered.
-Another question. If prices are strongly correcting, why is inflation not keeping pace with the correction of commodities and also dropping sharply? In other words, does global inflation remain “somewhat resilient”?
-If global price inflation is resilient, will we have the much-feared “bullwhip effect”? After long periods of corrections, it's only fair that prices regain positive ground, right?
-Will we see world governments continuing to strangle the robustness of the global economy?
LET's Graph$
-Long term. After gaining new tops (historical – 15.77), we can see that the asset has entered a downtrend on this chart. The bearish pivot formed in the second month of 2023. From that month onwards, the asset failed to gain positive ground. Will prices seek the previous bottom at 7.88? Or will they go straight through and form the aforementioned ABC pattern, looking for the 6.32 region?
-Still talking about the long term, the SETUP used is indicating that prices are trying to form a high pivot in this chart time. But how, if the trend is down? The bottom loss at 9.47 completely rules out the bullish pivot attempt indicated by SETUP.
-I only tell you one thing: Who dictates the rules of the game is the market… However, as I have been saying for 2 years, and after countless observations, I will tell you again (KKK): “SETUP’S don’t lie, but the market does”. So, open your eyes. (lol)
-On the weekly chart we have prices relying on the help of the long average to remain above the sticking range. Will this average be able to sustain prices and serve as a springboard to drive prices higher? But if there is a loss of this average, it may be inevitable that prices will seek the previous bottom reported above (7.88).
-Weekly chart's bearish pivot is active, and if there is a loss of the 9.38 range, things could get quite difficult.
-By the daily chart I don't want to say anything, as it is on the verge of pushing everything down the drain.
-So, knowing that commodities are suffering, but inflation is falling, but not as it should, will the markets (companies) keep the pace of declines without even making an attempt to rebound? And will governments continue to strangle their economies via interest rates?
-Below is the possible ABC pattern that the graph is trying to draw. But will it succeed?
-Do your analysis and good business.
-Be Aware, If You Buy, Use Stop!
-See below for other graphic analysis.
-Assuming that many commodities are undergoing strong corrections, is it possible that animal proteins will fall even more?
-After two straight years of increases, several commodities are going through this process, including animal protein. See below the graph of the future fat ox!
-The big question is: If commodities are plummeting around the world, how can we explain that global economies are recovering? And what's worse, they really are recovering! Here we have yet another paradox to be answered.
-Another question. If prices are strongly correcting, why is inflation not keeping pace with the correction of commodities and also dropping sharply? In other words, does global inflation remain “somewhat resilient”?
-If global price inflation is resilient, will we have the much-feared “bullwhip effect”? After long periods of corrections, it's only fair that prices regain positive ground, right?
-Will we see world governments continuing to strangle the robustness of the global economy?
LET's Graph$-Long term. After gaining new tops (historical – 15.77), we can see that the asset has entered a downtrend on this chart. The bearish pivot formed in the second month of 2023. From that month onwards, the asset failed to gain positive ground. Will prices seek the previous bottom at 7.88? Or will they go straight through and form the aforementioned ABC pattern, looking for the 6.32 region?
-Still talking about the long term, the SETUP used is indicating that prices are trying to form a high pivot in this chart time. But how, if the trend is down? The bottom loss at 9.47 completely rules out the bullish pivot attempt indicated by SETUP.
-I only tell you one thing: Who dictates the rules of the game is the market… However, as I have been saying for 2 years, and after countless observations, I will tell you again (KKK): “SETUP’S don’t lie, but the market does”. So, open your eyes. (lol)
-On the weekly chart we have prices relying on the help of the long average to remain above the sticking range. Will this average be able to sustain prices and serve as a springboard to drive prices higher? But if there is a loss of this average, it may be inevitable that prices will seek the previous bottom reported above (7.88).
-Weekly chart's bearish pivot is active, and if there is a loss of the 9.38 range, things could get quite difficult.
-By the daily chart I don't want to say anything, as it is on the verge of pushing everything down the drain.
-So, knowing that commodities are suffering, but inflation is falling, but not as it should, will the markets (companies) keep the pace of declines without even making an attempt to rebound? And will governments continue to strangle their economies via interest rates?
-Below is the possible ABC pattern that the graph is trying to draw. But will it succeed?
-Do your analysis and good business.
-Be Aware, If You Buy, Use Stop!
-See below for other graphic analysis.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.