Are Commodities Nearing Another Breakout Buy Signal?

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Commodities have been one of the few winners in 2022. But with elevated prices, consumers are now left with an ugly dose of on everyday costs (i.e., food and energy).

And with falling stock prices, they are getting a dose of deflation in their investment portfolios—not a good combination.

Today, we take a closer look at the bull market in commodities and why we may be at a critical trading juncture. 

Below, you can see a chart of the popular Invesco DB Commodity Index Tracking Fund (NYSE:).

DBC Daily Chart

Highlighted in green is a trading pattern that looks like a bullish ascending triangle. A breakout at (1) would suggest that commodities (and inflation) remain red-hot. As mentioned in the chart, if support breaks, investors will want to take profits in commodities.

It seems like right now would be a good time to put this on your watch list, whether it’s for your portfolio or pocketbook!