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Commodity Price Index Near Most Overbought Level In 45 Years

Published 02/25/2022, 09:26 AM
Updated 07/09/2023, 06:31 AM

The CRB Commodity Index has rallied sharply over the past 2 years.

And although the index is not near all-time highs, it is getting stretched into overbought extremes.

One way to look at whether a security is trading near extreme levels is to check on its % above the 200-day moving average. This indicator is screaming overbought right now.

CRB Commodity Index Weekly Chart

Only a few times has the CRB Commodity Index been this much above its 200-day moving average line – it is currently trading 16% above its 200-day.

Due to the Russian situation, it may seem odd for commodities to take a breather here. But perhaps a little “sell the news” or some consolidation will be in store. Either way, it’s worth watching. 

Latest comments

probably voted for Brandon
but it's only slightly above 45 years average
Because they have been supresed for over 10 years. They can remain overbought for a few.
Well one article you are calling inflation bust while another you call for long term cup and handle in metal.  I honestly think your forecast model is contradicting itself and it needed to be fixed.
Thanks Chris!
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