Commodities Price Peak Could Limit Inflation
Chris Kimble | Sep 02, 2022 12:53PM ET
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)?
Today’s chart is pretty straight forward. It is a daily chart of the commodities ETF Invesco DB Commodity Index Tracking Fund (NYSE: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 and weeks ahead.
Is the inflation story about to change? Perhaps if support breaks. Stay tuned.
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