Commodity Index Rallies Back To Key Inflection Point

commodity index rally testing price resistance bearish investing analysis june 16

TR Equal Weight Commodity Index “monthly” Chart

After peaking in 2011, Commodities have traded in a tight declining trend channel.

The falling trend channel is marked by each (1).

As you can see, price recently fell through the support line at (2), leading to lower lows before the recent rally attempt.

Commodities have rallied back to point (2) – prior support turned resistance).

If commodities start experiencing selling pressure/weakness from here, then it would suggest that we may be experiencing a counter-trend (growth) peak. Careful here. Stay tuned!

Twitter:  @KimbleCharting

Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.

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