Commodities : Are we due for a rally yet?

The CRB is one of the key index to monitor the commodities trend.

With the recent USD weakening, we have seen that the CRB has form somewhat of a ‘cup-shape’ which suggest that there a bullish trend is in formation.

However, Ichimoku is telling us another story :

  1. The price level is currently inside the kumo which represents a trendless state.
  2. This is further supported by the flattening kumo and the horizontal kijun sen; that the ‘average’ moving range is range bound and there is no sign that trend has turned.
  3. However, we do note that there is a possibility that a cup-and-handle is forming. If it does formed, we want to see the price level break through the kumo together with the Chikou Span piercing through it.



By iam802

Trend trading with Ichimoku