Commodity waves and supply shocks
Commodity prices react to real world events: weather, wars, mine strikes and production decisions. These shocks often start or end waves. Large rallies driven by fear of shortages often end as extended fifth waves, while long declines tend to form complex corrections.
Futures and contract rolls
Most commodity charts are built from futures contracts that expire every month or quarter. When a chart switches from one contract to the next, a gap can appear. Use continuous charts with care and check the contract month you trade.
Reports to watch
For energy, the US Energy Information Administration publishes weekly inventory reports. For grains, the US Department of Agriculture publishes the monthly WASDE report. For positioning, the CFTC publishes weekly Commitments of Traders data.
Latest Commodities analysis
Commodities Elliott Wave FAQ
Which commodity is best for Elliott Wave analysis?
Gold, because it is very liquid and trades nearly around the clock, which produces clean structures.
Why do commodities have such big moves?
Supply cannot change quickly, so small changes in demand or sudden supply shocks can move prices a lot.
What is a futures roll?
When a futures contract nears expiry, traders switch to the next contract. Continuous charts can show gaps at these points.
Sources and further reading
- Commitments of Traders reports (Commodity Futures Trading Commission)
- World Agricultural Supply and Demand Estimates (U.S. Department of Agriculture)
- Short-Term Energy Outlook (U.S. Energy Information Administration)
Educational content only. Nothing on this page is financial advice or a recommendation to buy or sell. Trading involves risk and you can lose money. Elliott Wave counts are probabilities, not certainties. Read our full disclaimer and affiliate disclosure.
