Nearly 20% Downside Ahead 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!

If you enjoyed this post and want more premium research, consider joining our community by starting a 30-day risk-free trial or signing up for our "Free Chart of the Week".

Allstarcharts Team