Commodities- Breakout attempt from multi-decade pattern

CLICK ON CHART TO ENLARGE

The chart above looks at the Thomson Reuters Equal Weighted Commodity Index over the past 50-years, on a monthly basis.

The index has spent the majority of the 40-years inside of rising channel (1). While inside of this rising channel the index has spent the majority of the past 7-years inside of falling channel (2).

The index hit the bottom of the channel back in 2016 and a small rally has followed, where it has reached its 23% Fibonacci retracement level of the 7-year decline and created a series of flat tops.

The index now finds itself in a very tight spot between falling resistance and rising support. What this important commodity index does with the jam the tight jam, should send a very important long-term message for this sector (Crude Oil, Metals and Grains). 

 

 

Email services@kimblechartingsolutions.com  

Call us Toll free 877-721-7217    International 714-941-9381 

Website: KIMBLECHARTINGSOLUTIONS.COM

Receive daily research posted on the blog daily

Follow on Twitter 

LATEST WEBINAR

 

 

 

 

Comments

No comments yet! Be the first to add yours.