- The price of a barrel of crude could lose another $20 and the broader commodity market could slump by a third as the recent downtrend is set to intensify, Phil Roberts, technical analyst from Barclays Capital, told CNBC.
The commodity market is still very much pricing in a further slow down and the signs we're seeing at the moment suggest that the process is intensifying rather than diminishing," Roberts said while taking a technical look at the Goldman Sachs Commodities Index.
The GSCI, which tracks a broad basket of commodities including oil, wheat and lean hogs, could lose another 30 percent to 40 percent, according to Roberts.
Check out the source which also includes a video clip: http://www.cnbc.com/id/27235187
And ironically, dearest Kathy has loaded two simple charts indicating the correlation of oil prices and EUR/USD. see: http://www.kathylien.com/site/us-dollar/why-is-the-eurusd-not-rallying
There are two charts to note, the daily chart: http://www.kathylien.com/site/wp-content/uploads/2008/10/eurusdoil101608_daily.jpg and the hourly chart http://www.kathylien.com/site/wp-content/uploads/2008/10/eurusdoil101608.jpg
And lastly, I would also note the correlation chart drawn on the oil and BDI from Kathy also. See posting http://www.kathylien.com/site/us-dollar/chiming-in-on-the-baltic-dry-index for the correlation chart: http://www.kathylien.com/site/wp-content/uploads/2008/10/baltic101608.jpg
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ReplyDeleteThanks for sharing.
Commodity Market