The Commodity Specialist view – An impressive rally from a September low point has halted medium term bears in their tracks. And in the process an interesting reversal signal has been seen on the longer term continuation chart. The current pullback could prove temporary…
- MONTHLY CHART – CONTINUATION:
Note how Sep produced a positive Key Reversal Month, suggesting the bears have had their day.
However, this signal was not apparent on the front month charts so should be treated with a degree of caution.
Note how resistance has so far come from the 23.6% recovery area. - DAILY CHART – DEC-09:
The break through falling resistance was an encouraging sign for bulls.
However, in the Commodity Specialist Guide we had anticipated a deep pullback – which is now occurring.
We are currently assuming this will be temporary.
76.4% support is now under test and we wish to await reaction here before contemplating buy strategies – that said the 4.340 04-Sep low does provide a clear and nearby risk level for buyers.
(Note that a deep pullback on the continuation chart (not yet seen) would imply new front month lows)
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