Friday, June 5, 2009

DBC running into resistance

Commodities have seen a strong run lately.  Some of this has been attributed to the weak dollar, some to demand and the inflation fear.  Currently many of the commodities are hitting resistance and may be a possible short.

DBC is a commodity ETF.  It is make up is as follows:





DBC is coming up to resistance from Nov of 2008 and its 200MA.  The chart also has the USD showing how some of money has been contributed to the USD falling
 
 
Here is a chart of WTIC(oil contract and the USD), because 35% of DBC is made up of Oil, it is important to watch where oil will go. Oil has moved from 40 to 70 from March to June and may need a pull back.    

 
 Gold is already down today with the dollar's gain today If the dollar rallies Crude could be under some pressure as well. 
The dollar has climbed above the resistance level in the post below, it will be important for it to close above 80.50.