Interesting Charts September 18th 2023
Cocoa – big trends often lose consistency at the penultimate high. Cocoa pulled back sharply for one week in August but recovered and jumped to a new high over the following five weeks. Today’s downward dynamic signals a peak of at least near-term but potential medium-term significance. Downside follow through will be required to confirm the signal.
NYSE Arca Gold BUGS Index continues to steady from the region of the March low. This is far from a consistent trend so a larger upside move, with sustained trading above 250, will be required to signal a return to demand dominance. The challenge for miners is energy and wage are both rising while gold prices have been rangebound.
The Brazilian Real is firming from the region of both the 1000-day and the 200-day MAs despite the likelihood of the Selic rate coming down further this week. It’s being helped along by the nascent recovery in consumer demand.