{"id":207383,"date":"2024-05-30T10:44:40","date_gmt":"2024-05-30T14:44:40","guid":{"rendered":"https:\/\/ibkrcampus.com\/?p=207383"},"modified":"2024-08-28T15:32:00","modified_gmt":"2024-08-28T19:32:00","slug":"chart-advisor-looking-for-leadership","status":"publish","type":"post","link":"https:\/\/www.interactivebrokers.com\/campus\/traders-insight\/securities\/macro\/chart-advisor-looking-for-leadership\/","title":{"rendered":"Chart Advisor: Looking for Leadership"},"content":{"rendered":"\n<p>By\u00a0<a href=\"https:\/\/links.investopedia.com\/u\/click?_t=36ba8fa8372241d58b3bfc06997a4332&amp;_m=67f24beb416c43828c7ef8e2874e81c8&amp;_e=USg9-QdFOnwvNF1qe1jtRgXjW0M1WIvuaf40Zbf-IPKoSqZitNe2K02ZM9uZh7cDoqOYB9lbIiQp2Q40rMLQoQtO7grXtLAvRMw_dauiMU_ZYRUBTNBNsOECgaXrr08Fc0P6Uhsxeqzgahty_lfJoLUwWg68qqqbi5Fa5xtuCR4hiWHj0Rajoe9UVmYOKxvHk-veTcwk8vEWfpeXGebxB7VzAa4noLVMn6unWRe0VcRngqjzhg_96a0MmQWsP9rVIpMkroRRvl7hHwk7NagdtQccrSchogMD2fUv6XUPzFmN9hk_DY3JypIX7Ux33QPEIGXxO2VCttwAN50FKO5uiwmMuxrOzXBIHtR18jmctwoYs6JvtFI788Z1Sedqhv5lAEOiSIKs2-mgTIdMOhWQRFE17un_4iYRQWp55H-5EqRc9mznbsG0ZwI10bDwbSpCYnHikvTQMKFs__OYRj4HeA%3D%3D\" target=\"_blank\" rel=\"noreferrer noopener\">Alex Cole<\/a><\/p>\n\n\n\n<p><strong>1\/ $USCI: U.S. Commodities Index Enters \u201cGo\u201d Trend<\/strong><\/p>\n\n\n\n<p><strong>2\/ GoNoGo Commodities RelMap<\/strong><\/p>\n\n\n\n<p><strong>3\/ Copper: A Base Metal<\/strong><\/p>\n\n\n\n<p><strong>4\/ Silver: A Precious Metal<\/strong><\/p>\n\n\n\n<p><em>Investopedia is partnering with CMT Association on this newsletter. \u00a0The contents of this newsletter are for informational and educational purposes only, however, and do not constitute investing advice. The guest authors, which may sell research to investors, and may trade or hold positions in securities mentioned herein do not represent the views of CMT Association or Investopedia. Please consult a financial advisor for investment recommendations and services.<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-1\">1\/<\/h2>\n\n\n\n<p><strong>$USCI: U.S. Commodities Index Enters \u201cGo\u201d Trend<\/strong><\/p>\n\n\n\n<p>Yesterday we took a broad look across the asset classes to assess the technical environment in terms of trend, momentum, volume, and volatility.\u00a0 Today, we\u2019ll dive a little deeper into the commodities space, and use GoNoGo methodology and new relative strength visualizations to look for leadership.\u00a0 The chart below shows the U.S. Commodities Index fund, $USCI, and we\u2019ll use our three questions from yesterday to give ourselves a robust overview of the technical analysis.<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>What is the trend?<\/li>\n\n\n\n<li>Where is momentum?<\/li>\n\n\n\n<li>Is there anything interesting happening around the zero line?<\/li>\n<\/ol>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1100\" height=\"789\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/30.05-1-1100x789.png\" alt=\"\" class=\"wp-image-207387 lazyload\" data-srcset=\"https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/30.05-1-1100x789.png 1100w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/30.05-1-700x502.png 700w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/30.05-1-300x215.png 300w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/30.05-1-768x551.png 768w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/30.05-1-1536x1102.png 1536w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/30.05-1.png 1920w\" data-sizes=\"(max-width: 1100px) 100vw, 1100px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/789;\" \/><\/figure>\n\n\n\n<p class=\"has-small-font-size\"><em>Courtesy of StockCharts<\/em><\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>GoNoGo Trend has recently flagged a new \u201cGo\u201d trend albeit with weaker aqua bars as price rallies after a period of amber \u201cGo Fish\u201d and \u201cNoGo\u201d bars<\/li>\n\n\n\n<li>Momentum is at a value of two, confirming the direction of the underlying \u201cGo\u201d trend<\/li>\n\n\n\n<li>GoNoGo Oscillator broke above the zero line several bars ago and has since retested and found support at that level. This was a leading indication of the trend change that we now see<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-2\">2\/<\/h2>\n\n\n\n<p><strong>GoNoGo Commodities RelMap<\/strong><\/p>\n\n\n\n<p>Relative strength is an incredibly powerful concept in the study of technical analysis and price action.\u00a0 It allows the investor to generate alpha, by investing in areas of the market that are outperforming, and staying away from those that are underperforming.\u00a0 The GoNoGo Commodities RelMap below applies the GoNoGo Trend methodology to several relative strength ratios and plots the trend colors in a panel with no regard for price action.\u00a0 This allows us to focus on the trend itself and uncover areas of leadership.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1100\" height=\"775\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/30.05-2-1100x775.png\" alt=\"\" class=\"wp-image-207388 lazyload\" data-srcset=\"https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/30.05-2-1100x775.png 1100w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/30.05-2-700x493.png 700w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/30.05-2-300x211.png 300w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/30.05-2-768x541.png 768w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/30.05-2-1536x1082.png 1536w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/30.05-2.png 1920w\" data-sizes=\"(max-width: 1100px) 100vw, 1100px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/775;\" \/><\/figure>\n\n\n\n<p class=\"has-small-font-size\"><em>Courtesy of StockCharts<\/em><\/p>\n\n\n\n<p>What we can see clearly is that when looking at a broad spectrum of commodities relative to the larger equity index, the leadership (blue and aqua panels) is coming from a select few areas.\u00a0 With the exception of natural gas (in a relative \u201cGo\u201d trend in the third panel from bottom) all of the other panels painting blue and aqua relative \u201cGo\u201d colors are base and precious metals.\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-3\">3\/<\/h2>\n\n\n\n<p><strong>Copper: A Base Metal<\/strong><\/p>\n\n\n\n<p>Given what we discovered above, we\u2019ll look at copper, a base metal, and use the GoNoGo Chart to give us a complete understanding of the technical environment. \u00a0 We can see that $CPER, the copper fund, has been in a \u201cGo\u201d trend since February of this year and has made a series of higher highs and higher lows.\u00a0 Below, we\u2019ll answer our three questions.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1100\" height=\"805\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/30.05-3-1100x805.png\" alt=\"\" class=\"wp-image-207396 lazyload\" data-srcset=\"https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/30.05-3-1100x805.png 1100w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/30.05-3-700x512.png 700w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/30.05-3-300x220.png 300w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/30.05-3-768x562.png 768w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/30.05-3-1536x1124.png 1536w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/30.05-3.png 1920w\" data-sizes=\"(max-width: 1100px) 100vw, 1100px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/805;\" \/><\/figure>\n\n\n\n<p class=\"has-small-font-size\"><em>Courtesy of StockCharts<\/em><\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>GoNoGo Trend tells us that the weight of the evidence suggests a \u201cGo\u201d trend remains in place, although we do see weaker aqua bars as price falls from its most recent high<\/li>\n\n\n\n<li>A Go Countertrend Correction Icon (red arrow) just after the high suggested that as momentum waned price may struggle to go higher in the short term and now the oscillator is resting at the zero line<\/li>\n\n\n\n<li>As GoNoGo Oscillator rides the zero line, we see the beginning of a GoNoGo Squeeze build and we note the reduced volatility. GoNoGo Oscillator is also a dark blue indicating increased relative volume on this pullback. It will be important to pay attention to the direction of the break of the GoNoGo Squeeze to help determine price\u2019s next direction.\u00a0 If this \u201cGo\u201d trend is to remain healthy, we will expect the oscillator to find support at zero as it has through the duration of the trend thus far<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-4\">4\/<\/h2>\n\n\n\n<p><strong>Silver: A Precious Metal<\/strong><\/p>\n\n\n\n<p>The metals are helping drive the commodity index higher and precious metals are playing their part.\u00a0 Below is a chart of $SLV, the silver fund, with the full suite of GoNoGo tools applied. After entering the \u201cGo\u201d trend at the beginning of March, price has made a series of higher highs and higher lows.\u00a0 We can see that as price fell from its most recent high, it found prior high support.\u00a0 This kind of traditional technical analysis is easy on a GoNoGo chart because there is nothing else on the chart distracting us from focusing on price movements.\u00a0 On to our three questions.\u00a0<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1100\" height=\"761\" data-src=\"\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/30.05-5-1100x761.png\" alt=\"\" class=\"wp-image-207398 lazyload\" data-srcset=\"https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/30.05-5-1100x761.png 1100w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/30.05-5-700x485.png 700w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/30.05-5-300x208.png 300w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/30.05-5-768x532.png 768w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/30.05-5-1536x1063.png 1536w, https:\/\/ibkrcampus.com\/campus\/wp-content\/uploads\/sites\/2\/2024\/05\/30.05-5.png 1920w\" data-sizes=\"(max-width: 1100px) 100vw, 1100px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1100px; aspect-ratio: 1100\/761;\" \/><\/figure>\n\n\n\n<p class=\"has-small-font-size\"><em>Courtesy of StockCharts<\/em><\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>GoNoGo Trend is painting aqua \u201cGo\u201d bars, telling us that the trend remains in place\u00a0<\/li>\n\n\n\n<li>GoNoGo Oscillator is at a value of 1 and volume is light<\/li>\n\n\n\n<li>The zero line has acted as resistance twice already during this \u201cNoGo\u201d move, but now we see that it failed to hold and the oscillator has broken into positive territory<\/li>\n<\/ol>\n\n\n\n<p>&#8212;<\/p>\n\n\n\n<p>Originally posted 30th May 2024<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Yesterday we took a broad look across the asset classes to assess the technical environment in terms of trend, momentum, volume, and volatility.\u00a0 Today, we\u2019ll dive a little deeper into the commodities space, and use GoNoGo methodology and new relative strength visualizations to look for leadership.\u00a0 <\/p>\n","protected":false},"author":186,"featured_media":207399,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":true,"footnotes":""},"categories":[21,18,6,8,9,22,23,26,3],"tags":[251,7370,7221,11614,11957,2172,2087,11830,3511,11785,262,7279,9729,3995,6105],"contributors-categories":[13686],"class_list":{"0":"post-207383","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-commodities","8":"category-macro","9":"category-north-america","10":"category-region","11":"category-securities","12":"category-stocks","13":"category-technical-analysis","14":"category-text-articles","15":"category-traders-insight","16":"tag-corn","17":"tag-cper","18":"tag-dba","19":"tag-dbb","20":"tag-fcg","21":"tag-gdx","22":"tag-gld","23":"tag-moo","24":"tag-slv","25":"tag-slx","26":"tag-spy","27":"tag-ung","28":"tag-usci","29":"tag-uso","30":"tag-wood","31":"contributors-categories-investopedia"},"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Chart Advisor: Looking for Leadership | Traders&#039; Insight<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.interactivebrokers.com\/campus\/wp-json\/wp\/v2\/posts\/207383\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Chart Advisor: Looking for Leadership | IBKR Campus US\" \/>\n<meta property=\"og:description\" content=\"Yesterday we took a broad look across the asset classes to assess the technical environment in terms of trend, momentum, volume, and volatility.\u00a0 Today, we\u2019ll dive a little deeper into the commodities space, and use GoNoGo methodology and new relative strength visualizations to 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