There have been many whipsaws in the Commodities’ market as of late, with few intermediate-term trends allowing us to trade them with well-defined risk. Every now and again the market provides us with a clear opportunity, this time it’s in the form of a breakdown in Tumeric.
Last week Tumeric Futures broke down from a sloppy range to 17-month lows as the downward slope of the 200-day moving average steepens. Momentum had formed a potential bullish divergence, but that’s clearly failed to be confirmed by price.
Click on chart to enlarge view.
The weight of the evidence suggests prices are now in a downtrend and that we can be short if they’re below 6,485, with a downside target of 5,225.
This space has been extremely frustrating for many market participants, so when clear trends like this develop we want to be involved. If prices don’t see downside follow-through and get back into their previous 16-months range, then we have our level and can exit with minimal losses.
Thanks for reading and let us know your thoughts!