Corn, gold, other commodities showing some bearish signs too

On the daily chart for corn, there are also some bearish signs. The Klinger volume indicator (red and green in the 1st subgraph beneath the price chart), volume is showing increasing selling pressure, which is an indication that profit-taking is the prevailing sentiment. The Bollinger Squeeze indicator, as shown in the histogram in the 2nd subgraph, has turned to dark green, an indication of falling momentum and volatility. Another indicator of waning momentum is that even though prices moved higher, they closed within the Bollinger Bands, whereas higher prices had previously closed outside the Bollinger Bands.

Until prices break through the EMA, and perhaps one additional moving average, I wouldn't consider a short trade. Furthermore, the Bollinger Moving Average (20-period Simple MA) is still a significant distance away, so resurgence of the existing trend could certainly drive prices much higher still.

Commodities Inflation Revisited

One of the articles to which I provided a link the other day has predicted corn prices of $6/bushel, so prices could certainly go much higher still. Here is a repeat of that link:

2007 Was Commodities Banner Year, More Reasons to be Bullish for 2008

Here is an opposing viewpoint posted today on Seekingalpha.com:

Most Commodities Currently Overbought, Led By Gold

In the daily chart for gold, shown at right, the Klinger volume indicator appears to confirm the above headline, as it has turned red, a sign of selling activity, and the possibility of lower prices ahead. Crude oil has also turned bearish, although I haven't posted a chart.

The above two articles, both from the same source, appear to contradict one another. That isn't necessarily so. The second article appears to be more short-term in focus, whereas the first one is clearly oriented to a longer-term perspective. I interpret this to suggest possible short to medium-term price weakness or a correction, with commodities prices continuing to rise after this pull-back or correction. Quoting from the second article, "While commodities in general are in a solid uptrend, it wouldn't be surprising to see some of them stall in the short term." To me, this suggests taking some profits and preparing for another bull run in commodities after a short pull-back or consolidation phase.