The 3 Most Telling Price Charts Now: Oil, Copper, 10-Year Yield

The 3 Most Telling Price Charts Now: Oil, Copper, 10-Year Yield

These charts tell a story. Levels have been reached — or are about to be reached — that indicate the possibility of a more permanent change in direction. The commodities price charts may be telling in terms of future inflation possibilities. The chart of a Treasury bond yield may be expressing similar concerns. Here's how the daily price of oil chart looks right now: From $61/barrel to$ 81 in just 2 months time is a 32% move. Sticking to just price chart analysis, without even getting into what might be the fundamental reasons, this is an extraordinary upward thrust. The July high of $76. 75 did not provide much resistance, indicating the force of buying present in this market. After such a dramatic move to the upside, you might expect to begin to see divergences on the relative strength indicator (the RSI above the price chart) or the moving average convergence/divergence indicator (MACD, below the price chart) but, so far, there are none. It's hard to see how stock and bond markets could ignore an oil price move up to the $100/barrel level — that's inflationary no matter what else is going on with interest rates or the price of