Photo by Timothy Newman on Unsplash

Inflation concerns peaked last year when agriculture and oil prices peaked. This year has seen inflation fears subside as key price inputs fall. However, investors should not be complacent. Inflation risks remain.

Here is a brief look at a “quarterly” chart of crude oil to underscore the “behind the scenes” inflation battle. As you can see below, crude oil tested a 15-year lateral resistance level (combined with channel resistance) and has been on the decline since.

But it has recently been testing its up-trend price support level at point (1). And, in my humble opinion, future inflation reports will most likely be impacted by what happens at this area. If support continues to hold, inflation will likely remain stubbornly high. Stay tuned.

Crude Oil “Quarterly” Chart

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