As we prepare for the week ahead, let’s glance at some charts of long-term commodities. I have a few things to say about each in the caption area.
We begin with crude oil. In the bears’ favor is the enormous rounded top and oil’s history of sinking hard beneath such tops. This is dulled somewhat due to recent price action, which has pierced the pattern. This pattern is down, though, and not out.
Gold continues to be my favorite long-term bullish pattern. It has stunk since August 6, but three months is just a blip in the context of this huge chart.
Similar to crude oil, heating oil has completed its third huge bearish setup. And, unlike crude oil, it has left its recent topping pattern pristine.
Much the same can be said, unsurprisingly, of gasoline futures.
Finally, the London FTSE equity futures (the FTSE 100 trading on LIFFE is sporting a king-sized one of overhead supply. The easy gains are in the rear view mirror. This is high-risk.