Hedge your bets

Last week was a poor week for owning a lot of varying commodities. We saw an insane move in Silver just to highlight one key example. There were numerous ways to play the downward pressure on many of the commodities and here is one:

The question now is this: were traders simply playing a down move in GSG, or was it being used as a hedge against long commodity positions?

No matter your trade view, it appears that GSG is now seeing some stability in price as the Stochastics are beginning to bottom. In addition, the MACD appears to be done falling off a cliff and is bottoming as well. The RSI indicator is at 30.8 which is very near the area of being oversold. Support is at 34.

If you are a trader that likes pullback and/or bounce plays, this setup may be right down your alley.

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