abrdn Bloomberg All Commodity Strategy K-1 Free ETFArca
Description
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I bought into BCI this year as an inflation hedge and a play on the potential start of a long-term commodities upswing. However, I am generally skeptical of the asset class overall simply because commodities tend to have prolonged down cycles where they drag down the rest of the portfolio and since I think the global trend toward automation is ultimately deflationary.
Since I currently have a stake in commodities, I would like to practice understanding chart patterns with the hope of eventually being able to detect when a prolonged downturn might occur.
It looks to me like either a megaphone or ascending triangle may be developing in BCI. A megaphone tends to be a continuation pattern (so bullish, in this case) while an ascending triangle tends to be neutral. The MACD has crossed above its signal line, which can be a bullish indicator, but the slope is pretty flat right now. RSI is currently range-bound, without oversold or overbought signals. Overall, I'm neutral until more information comes in.
Comment
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Looks like ascending triangle has been confirmed. Bullish sign for now.
The RSI peaks are descending and the lows getting lower while price is essentially flat. That is an RSI divergence. and is a red flag for me (I dont say bearish because RSI is above 50).
Any flat consolidation pattern like this favors continuation of the trend.
This, however, is my dream scenario. I'd trade between the upper and lower channel (LONG). The trend favors a bullish breakout, and a failed channel move to the downside is very obvious. You can stop out very easily with small losses.
Any flat consolidation pattern like this favors continuation of the trend.
This, however, is my dream scenario. I'd trade between the upper and lower channel (LONG). The trend favors a bullish breakout, and a failed channel move to the downside is very obvious. You can stop out very easily with small losses.