Chart of the Day - Monday, April 25th, 2022

Today’s Chart of the Day was shared by Drew Wells (@DrewTheCharts). It's a daily candlestick chart of the Bloomberg Commodity Index over the past year. Commodities have been outperforming Stocks and Bonds by a longshot this year. However, they've come under pressure in the past week, and the strong uptrend looks vulnerable in the near term. The index broke out to its highest level in nearly eight years last Monday, however that breakout failed to hold, and we're currently testing the rising trendline that has been in place since the end of last year. As we know, failed breakouts often lead to fast moves lower, and it doesn't help that RSI has formed a bearish divergence. The longer-term uptrend remains intact, but it wouldn't be surprising to see some mean reversion from Commodities in the coming weeks.