From the desk of Steven Strazza @Sstrazza and Ian Culley @Ianculley
Opportunities are springing up in the commodity space!
Yes, energy, base metals, and (especially) precious metals continue to consolidate below overhead supply.
But this doesn’t necessarily speak to weakness…
In fact, much of the sideways chop in commodities is taking place at logical levels of resistance. And aside from the dramatic sell-off in lumber, we see more upside resolutions than violations of critical support levels.
We recently pointed out that base metals managed to hang tough in the face of a significant correction in copper. And this week, tin is breaking out to new all-time highs.
OJ is also breaking loose this week after repeatedly testing the upper boundary of a multi-year base.
But this week, we’re going to focus on a breakout in a section of the commodity market that hasn’t received much attention lately: grains.
Since the explosive moves we witnessed in the spring, much of the grain market has quieted down. However, it’s impossible to ignore this big base breakout in Minneapolis Spring Wheat. [Read more…]