From the desk of Ian Culley @IanCulley
Sellers are in the driver's seat when it comes to commodities these days.
Besides natural gas and livestock contracts, few commodities present buying opportunities that we like. In reality, most have either broken down or are on the verge of breaking down.
As the latest bout of selling pressure shows little signs of easing, we’re likely to experience more damage in the coming days and weeks.
Copper, one of the most economically sensitive and widely followed commodities in the world, is a great example of recent weakness. It can’t stop falling.
Given the downside volatility raw materials have experienced since the start of the summer, many trends are stretched. We don’t want to be too bearish here. We want to let the dust settle.
With that said, it’s hard not to imagine where the bears will strike next.
And when we scroll through our charts, it looks like they have crude oil in their sights.
Let’s take a look.