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Prices have been trading in a range since the turn of the year, where an inverted Head & Shoulders (H&S) pattern appears to be taking form.
As long as the 39.10 low remain intact, we expect prices to stay bullish in the near term, at least up to retest the neckline at 41.91-42.00.
A strong push above this resistance band would likely push prices higher into the 45.79-46.50 range next.
Prices are holding above the moving averages and momentum indicators are showing a pick up in momentum. Both factors are likely to give the bulls a near term boost.
For now, continue to look to the upside for commodities in general (also see comments on the CRB index in the crossroad section). (Read Report)
Source : CIMB Research