home Latest News Commodities: Breakout Attempt From Multi-Decade Pattern – Investing.com

Commodities: Breakout Attempt From Multi-Decade Pattern – Investing.com

This post was originally published on this site

Commodities- Breakout

Commodities- Breakout

The chart above looks at the Thomson Reuters Equal Weighted Commodity Index over the past 50-years, on a monthly basis.

The index has spent the majority of the 40-years inside of rising channel (1). While inside of this rising channel the index has spent the majority of the past 7-years inside of falling channel (2).

The index hit the bottom of the channel back in 2016 and a small rally has followed, where it has reached its 23% Fibonacci retracement level of the 7-year decline and created a series of flat tops.

The index now finds itself in a very tight spot between falling resistance and rising support. What this important commodity index does with the jam the tight jam, should send a very important long-term message for this sector (, Metals and Grains).

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.