The Commodity Trader’s view –
The recovery in the CRB Index from a late Feb low reached our first objective on 11th Jun, the 23.6% recovery level. We were ready to see a pause in the uptrend here, and this has happened, with a corrective phase now in process.
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WEEKLY CHART – CONTINUATION:
After a low of 200.16 a recovery got underway.
Our first target on this chart was the 23.6% 264.78 retracement – and this was recently reached, providing effective resistance too.
Later on, note higher resistance from the significant 284.61 Jan-07 low. -
DAILY CHART:
An initial slip back found support just above the 244.31 06-Jan high – this plus the 240.95 38.2% level offers the first area of support.
But we think there is a good chance of this coming under better pressure.
Better support could emerge from the 229.62-225.40 area, 24-Mar high and 61.8%.
Note how the 76.4% level nicely coincides with the platform base from which the Index took off in late Apr. A coincidence? – No. Please compare with prior Crude Oil and US Dollar Index Updates.
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