Bespoke's Commodity Snapshot (6/25/08)

Below we highlight our trading range charts of ten major commodities.  The green shading represents two standard deviations above and below the commodity's 50-day moving average, and moves out of this area to the upside or downside mean the price is overbought or oversold. 

As shown, oil and natural gas continue to trade right along the top of their trading ranges.  It has now been 13 days since oil has made a new closing high, which seems like an eternity with the action in crude prices lately.  Is the prolonged consolidation just a spring loading up for its next spike higher, or is there just too much bearishness on the commodity at these levels?

Aside from energy, gold, silver and orange juice remain in downtrends, while copper and platinum are pretty much trading sideways.  After going parabolic from flood problems Iowa, corn prices have come in slightly in recent days.  Wheat has also been going back up in June, but still remains well below the levels it saw earlier this year.  And after trading sideways for more than 3 months, coffee has recently seen big gains to move it into overbought territory.

click to enlarge