The weakening dollar is driving up commodity prices. Brent crude is headed for a test of resistance at $115/barrel after earlier breaching the declining trendline, indicating that a bottom is forming. Breakout would signal the start of a primary up-trend, with an initial target of the 2011 highs at $125*. Rising oil prices would add a further brake on the economic recovery.
* Target calculation: 115 + ( 115 – 105 ) = 125
CRB Commodities Index has also signaled that a bottom is forming. Breakout above 325 would signal the start of a primary up-trend, with an initial target of 350*. Recovery of 63-day Twiggs Momentum above zero would strengthen the signal.
* Target calculation: 325 + ( 325 – 300 ) = 350
Hi Colin,
US Light Crude seems to be showing a “Lower High” on a weekly chart and has bounced off resistance on adaily chart. RSI is pointing negative…. can you advise why US crude signals are different to Brent Crude as above?
Thanks
Scott