Further Upside in CRB Index

The Commodity Trader’s view - An earlier pullback in the CRB Index found solid technical support in early July and subsequent recovery has been impressive. Following a recent erosion of former 23.6% resistance there seems to be scope for further modest gains at least.

• WEEKLY CHART: After a low of 200.16 the best recovery since the start of the index’s collapse last year has been seen. The first target on this chart was the 23.6% 264.78 retracement – it was reached and provided initial resistance, now again under pressure. Now note higher resistance from the significant 284.61 Jan-07 low.
• DAILY CHART: A strong bounce from near the 229.62 24-Mar high has now resulted in a new high for the year. There is currently little in the s/term chart structure to suggest bear fatigue – a recent small key reversal day (06-Aug) is thought to be too weak a bear sign. Another push higher would see a Fibo projection area of 281.35/282.30 loom into view. This lies close to that old 284.61 low on the Weekly chart – we will be on the lookout for resistance around here.

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