These 3 Charts Indicate That Inflation May Be Peaking
Chris Kimble | Dec 21, 2021 04:51PM ET
Over the past 18 months, I’ve penned several articles about traceable commodity breakouts, rising commodities prices, and inflation risks.
With each breakout came more inflation pressures. And today, we continue to battle high energy, food, and housing prices.
But what if I told you there was a chance that inflation is peaking. Crazy right?
Well, today’s chart 3-pack highlights important commodity price indices that may be peaking: the Baltic Dry Index (shipping costs), the Equal Weight Commodity Index, and Cattle prices. Note that these are all long-term “monthly” charts.
All 3 indices have returned to key Fibonacci resistance levels. The Baltic Dry Index reached its 50% Fibonacci retracement at (1) and turned lower (to the turn of 50%). And the Commodity Index and Cattle could be peaking out at (2), also key Fibonacci retracement levels.
If resistance holds for commodities, then there is a good chance that prices will stop rising in the months ahead. Keep an eye on these indices.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.