Oil Breaks Down

USO – our proxy for Crude Oil – has crashed through support dating back to November of last year and formed a bearish double bottom breakdown in the process. Falling oil prices are generally deemed deflationary and, viewed alongside recent weakness in the price of Gold, should give pause to those of you considering fresh long commodity positions.

Palladium Gets Its Groove Back

After briefly retracing mid-month following a triple top breakout, PALL – our proxy for Palladium – has just formed a fresh double top breakout, a move that P&F chartists commonly refer to as a bullish catapult. The implication here is that, while elimination of supply at the triple top level caused prices to temporarily fall back, new buyers stepped in at those lower levels, creating fresh demand which in turn is powering prices even higher.