Like stocks, commodity prices don’t always go down or up. But the one thing you can practically guarantee about the commodities market is that somewhere prices are on the move. And predicting these prices is where fundamentals and technicals come in.
Technicals versus fundamentals, which is better? This is an ongoing argument among traders, but actually they’re both necessary. I use both technicals and fundamentals, and I firmly believe it’s vital to have a well-rounded knowledge of both in order to be a successful trader.
The trick is to know when to rely more on one or the other, or sometimes even neither, and just go with your intuition – your gut – sometimes, for some of us, this is the best indicator of all. Certain commodities, such as crude oil, tend to make use of the fundamentals; others, such as financials, rely more heavily on technicals.
The Daily Reckoning Australia