- Chinese stocks drift lower
- Crude oil rising
- Other commodities weak
China’s Shanghai Composite Index continues to drift lower on the long-term, monthly chart.
Apart from crude oil, commodity prices have fared little better. But crude plays such a dominant role in most commodity indices that they appear more buoyant. Dow Jones-UBS Commodity Index rallied to 140 before retracing for another test of primary support. Oscillation of 13-week Twiggs Momentum around zero, however, does not suggest a significant trend.
Crude oil is doing a lot better, heading for another test of $110/barrel on the back of supply threats from geo-political tensions. The ascending triangle is very large, but breakout would suggest a long-term target of the 2008 high at $145*.
* Target calculation: 110 + ( 110 – 75 ) = 145
…Enough to make even Gazputin grin.