econintersect.com
       
  

FREE NEWSLETTER: Econintersect sends a nightly newsletter highlighting news events of the day, and providing a summary of new articles posted on the website. Econintersect will not sell or pass your email address to others per our privacy policy. You can cancel this subscription at any time by selecting the unsubscribing link in the footer of each email.



posted on 11 February 2017

Where The RUBBER Meets The Road

from Elliott Wave International

See why rubber prices bounced from an 11-year low to a 4-year high

There are nearly 50 commodity markets traded all over the world at any given time. That's one for every state in the United States. So, how is an investor or trader supposed to know which of these markets to follow and which ones to dismiss?

Well, for our long-time Commodity Junctures editor Jeffrey Kennedy, the answer is simple: Don't wait for an Elliott wave pattern to develop on a market's price chart. But rather, choose price charts that already present discernible Elliott wave patterns.

Jeffery will be the first to admit -- sometimes, they show up in the most unlikely of places.

Back in November of 2016, Jeffrey (at a Commodity Junctures subscriber's behest) found an opportunity on the price charts of a market he never included before in his 20-plus years as EWI's senior commodity analyst --rubber.

That opportunity took the shape of one of the most exciting Elliott wave patterns: the ending diagonal. It's a five-wave pattern labeled 1-5 that can only form in the final position of a wave sequence -- i.e., wave 5 of an impulse, or wave C of a correction.

Most importantly, when this pattern ends, it's followed by a swift and powerful reversal that retraces the entire length of the diagonal. Here's its idealized diagram, in bull and bear markets:

In his November 2016 Monthly Commodity Junctures video episode on rubber, Jeffrey made the case for a post-diagonal thrust UP for the long-suffering rubber market:

"We'll be discussing a market that I've actually never spoken about before. I was surprised to find very high quality wave patterns on the charts. This is how we can label the weekly price chart of rubber.

"An ending diagonal in the wave c position. Subsequent price action has been quite impulsive to the upside. Now, as you know, whenever an ending diagonal terminates, it tends to resolve quite swiftly and quite sharply back to beyond the origin of the pattern, and that comes into play about 285.5.

"As we move into 2017, I suspect that we will have retraced that entire move to the downside that essentially took two-and-a-half years to form."

From there, rubber prices made a serious commitment to the upside, soaring to a four-year high on January 26.

Now, according to mainstream analysis, rubber's shocking rebound off 11-year lows is the result of weeks' long floods in Thailand, the world's top rubber producer.

You, however, now know the real story: Rubber's rally began long before the sky's opened up in Southern Thailand. It kicked off in late November, as the result of a complete Elliott wave ending diagonal pattern.

When it comes to choosing the right commodity market at the right time, the independent perspective of Elliott wave analysis goes a long way.


Free eBook:
Commodity Traders Classroom

Get 32 pages of actionable trading lessons, hand-selected by EWI Chief Commodity Analyst Jeffrey Kennedy, designed to make you a better trader.

Get free, instant access

This article was syndicated by Elliott Wave International and was originally published under the headline Elliott Wave Analysis: Where the RUBBER Meets the Road.

>>>>> Scroll down to view and make comments <<<<<<

Click here for Historical News Post Listing










Make a Comment

Econintersect wants your comments, data and opinion on the articles posted. You can also comment using Facebook directly using he comment block below.




Econintersect Contributors


search_box

Print this page or create a PDF file of this page
Print Friendly and PDF


The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.


Take a look at what is going on inside of Econintersect.com
Main Home
Analysis Blog
Angst in America, Part 5: The Crisis We Can’t Muddle Through
Was Marx Right?
News Blog
Kim Jong Un Pretends To Fly An Airplane
21 April 2017: ECRI's WLI Growth Index Continues to Slow
Final April 2017 Michigan Consumer Sentiment Continues Positive Trend
April 2017 Chicago Purchasing Managers Barometer New Orders Close To Three-Year High
Advance Estimate 1Q2017 GDP Quarter-over-Quarter Growth at 0.7 Percent.
Rail Week Ending 22 April 2017: Marginally Slower Week
March 2017 Median Household Income Not Significantly Different
Infographic Of The Day: The Largest Company Headquartered In Each State
Early Headlines: Asia Stocks Down, Dollar, Oil, And Gold All Up, Trump Will Pay ACA $, State Dept To Cut 9%, Trump Tax Plan, UK House Prices Drop, France GDP Growth Slows, And More
What Americans Shop For With Coupons Online
Fact Check: Are A Million African Migrants Already On Their Way To Europe?
Doctor Google Will See You Now
What We Read Today 27 April 2017
Investing Blog
Think Differently For Better Trading Results
Facebook Is Coming After Snapchat From All Sides
Opinion Blog
Trump's Tax Plan Is Brilliant Politics And Even Better Economics
Facts Are Not Always More Important Than Opinions: Here's Why
Precious Metals Blog
A New Age For Gold
Live Markets
28Apr2017 Market Update: Wall Street Large Caps In The Red, Nasdaq Up Two Percent, Investors Uneasy With Lack Of Consumer Spending
Amazon Books & More






.... and keep up with economic news using our dynamic economic newspapers with the largest international coverage on the internet
Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government































 navigate econintersect.com

Blogs

Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day
Weather

Newspapers

Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government
     

RSS Feeds / Social Media

Combined Econintersect Feed
Google+
Facebook
Twitter
Digg

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution

Contact

About

  Top Economics Site

Investing.com Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2017 Econintersect LLC - all rights reserved