| Some of the most successful trend-following technical analysts focus purely on commodities, for several reasons. One, commodity futures are liquid, highly traded and driven by global considerations. So, price discovery is, by and large, good. Two, when commodities go into trends, those can last for months or even years. Three, these contracts are margin-traded and it is as easy to go short as to go long.
Price trends in non-precious metals are driven largely by global supply and demand. Last year was bad for metals. Downbeat economic conditions meant iron ore declined a little over 15 per cent in price, globally. Copper prices on the London Metal Exchange dropped nine to 10 per cent. Aluminium hit a five-year low...............................................Full Article: Source
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