Today's interesting charts
Comment of the Day

July 30 2010

Commentary by Eoin Treacy

Today's interesting charts

Eoin Treacy's view The Chart Library has an extensive selection of commodity and related funds which may be of interest to subscribers.

Wheat - breaking out of the more than yearlong base. Prices are somewhat overbought in the short term but a downward dynamic would be required to check momentum beyond a brief pause.

Oats - testing the upper side of the base and a downward dynamic would be required to check potential for a successful upward break.

Arabia coffee - breaks upwards to a new 12-year high and a fall back below 160c would be required to check upside potential.

Orange Juice - has been ranging in a relatively gradual mean reversion for much of the year and is currently rallying towards the upper side of the range. A sustained move below 135.60¢ would be required to question potential for continued higher to lateral ranging.

Sugar - continues to rally impressively, having found support in the region of 13c from May. While somewhat overbought in the short-term, a sustained move below 17c would be required to question scope for further upside.

In conclusion, while the current weakness of the US Dollar has been a tailwind, the extent to which these commodities have advanced is not solely currency related and the commonality across the sector indicates demand has returned to a position of dominance.

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