Tag: CRB Commodities Index

Brent Crude broke support at $122/barrel, warning of a correction to test $115. Respect of $115 or a 63-day Twiggs Momentum trough above the zero line would signal a strong primary up-trend. In the long term, breakout above $126 would offer a target of $150/barrel*.

* Target calculation: 125 + ( 125 – 100 ) = 150

The broader CRB Commodities Index is headed for a test of primary support at 295 after breaching the long-term rising trendline. Failure of support would signal a decline to 265*. A 63-day Twiggs Momentum peak below the zero line already indicates continuation of the primary down-trend.

* Target calculation: 295 – ( 325 – 295 ) = 265

Colin Twiggs

Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He founded PVT Capital (AFSL number 546090), which provides income and growth strategies to wholesale clients.

Colin also co-founded Incredible Charts and writes the popular Patient Investor newsletter.

Using a top-down approach, Colin identifies macro trends in the global economy and then combines fundamental and technical analysis to evaluate opportunities in sectors that stand to benefit.

Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008/2009 and 2020 bear markets well ahead of actual events.

Brent crude continues to consolidate below resistance at $125/$126 per barrel. Upward breakout would signal a primary advance with a long-term target of $150*. Reversal below $122 is less likely but would warn of a correction to test support at $115.

* Target calculation: 125 + ( 125 – 100 ) = 150

The broader CRB Commodities Index is undergoing a correction. Breach of the rising trendline would indicate that the long-term up-trend is weakening. And failure of primary support at 295 would signal a decline to 265*. Respect of the zero line by 63-day Twiggs Momentum (from below) warns of continuation of the primary down-trend.

* Target calculation: 295 – ( 325 – 295 ) = 265

Colin Twiggs

Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He founded PVT Capital (AFSL number 546090), which provides income and growth strategies to wholesale clients.

Colin also co-founded Incredible Charts and writes the popular Patient Investor newsletter.

Using a top-down approach, Colin identifies macro trends in the global economy and then combines fundamental and technical analysis to evaluate opportunities in sectors that stand to benefit.

Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008/2009 and 2020 bear markets well ahead of actual events.

Brent crude is consolidating in a narrow range below $125/$126 per barrel. Upward breakout is likely and would offer a long-term target of $150.

* Target calculation: 125 + ( 125 – 100 ) = 150

Despite the weakening dollar, CRB Commodities Index is testing medium-term support at 310. Failure would indicate another test of primary support at 295. Breach of the long-term rising trendline would warn that the 4-year up-trend (similar to that of gold) is coming to an end. Recovery above 330 is as likely, however, and would signal the start of a primary advance, with a long-term target of 350.

* Target calculation: 325 + ( 325 – 295 ) = 355

Colin Twiggs

Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He founded PVT Capital (AFSL number 546090), which provides income and growth strategies to wholesale clients.

Colin also co-founded Incredible Charts and writes the popular Patient Investor newsletter.

Using a top-down approach, Colin identifies macro trends in the global economy and then combines fundamental and technical analysis to evaluate opportunities in sectors that stand to benefit.

Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008/2009 and 2020 bear markets well ahead of actual events.

Brent crude broke through resistance at $125/barrel on the Monthly chart, despite the strengthening dollar. Target for the advance is the 2008 high of $145.

* Target calculation: 125 + (125 – 100 ) = 150

The broader CRB Commodities Index lags far behind. Breakout above 325 would signal an advance to 370*. But 63-day Twiggs Momentum remains below zero, indicating a primary down-trend, and reversal below the rising trendline would strengthen the signal. Failure of primary support at 290 would confirm.

* Target calculation: 330 + ( 330 – 290 ) = 370

Brent crude is headed for a test of its 2011 high at $126/barrel as tensions with Iran escalate. Upward breakout would offer a long-term target of $150*. A trough above the zero line on 63-day Twiggs Momentum reflects the strong up-trend.

* Target calculation: 125 + ( 125 – 100 ) = 150

The CRB Commodities Index is being boosted by rising crude prices, petroleum-based products making up a third of the index weighting. The index itself is testing resistance at 325, while 63-day Twiggs Momentum is at the zero line. Breakout above 325 would signal a primary up-trend with an initial target of 350*.

* Target calculation: 325 + ( 325 – 300 ) = 350

Brent Crude is advancing towards its target of $130/barrel* after breaking resistance at $115. Respect of the zero line by the last trough on 63-day Twiggs Momentum strengthens the bull signal.

* Target calculation: 115 + ( 115 – 100 ) = 130

The broader CRB Commodities Index breached its descending trendline but continues to display uncertainty. Breakout above 325 would signal a primary up-trend with an initial target of 350*. A stronger dollar is likely to retard commodity prices.

* Target calculation: 325 + ( 325 – 300 ) = 350