The Commodity Specialist view – After a major low in 2009 the CRB Index started its recovery, a second upleg getting underway in May last year. Fairly steady progress has now seen the Index starting to test the next key resistance area, and we currently await reaction here.
- WEEKLY CHART:
Recovery has so far been pushing at resistance from the bull channel top projection, which lies just ahead of the 50% recovery level, and then 341 equality target (Feb-09/ Jan-10 upmove extended off the May low).
All this provides a key resistance area which looks likely to encourage some sort of pullback phase. - DAILY CHART:
The Index is currently consolidating, keeping below the bull channel top projection at 350 now.
While first support is offered by the 320.38 Nov high (and rising support line), more key is the s/term channel base at 313.00 currently – a breach of this would imply that a more prolonged correction phase was in process. We could then calculate deeper potential supports.
The picture remains bullish for now, but bulls are on the alert.
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