Commodities Price Peak Could Limit Inflation

The red-hot run higher in commodities sent inflation soaring higher. And this lead to the Federal Reserve raising interest rates at a fast clip.

BUT it appears that the commodities rally may be slowing down (or over). As this data gets prices in, could it lead to lower grocery bills (and easing inflation)?

Well, let’s turn to Joe Friday for “The facts, Ma’am. Just the facts.”

Today’s chart is pretty straightforward. It is a “daily” chart of the Commodities ETF DBC and highlights a head and shoulders topping pattern that could lead to lower commodity prices. Active investors need to watch the neckline in the days/weeks ahead.

Is the inflation story about to change? Perhaps if support breaks.

(Click on image to enlarge)

More By This Author:

S&P 500 Posting Big Bearish Reversal In August
Junk Bonds Selloff Keeps Bears In Charge
Global Investors Hoping China ETF (FXI) Holds At Support

Disclosure: Sign up for Chris's Kimble Charting Solutions' email alerts--click here.

How did you like this article? Let us know so we can better customize your reading experience.


Leave a comment to automatically be entered into our contest to win a free Echo Show.