Below key LT support
The Thomson Reuters Commodity Index (CRB) has fallen below its middle band support and this is bearish for the index.
If a sustained low is going to form, the bulls need to take charge almost immediately.
Otherwise, the CRB index could potentially fall towards its Fibonacci targets of 154-160 before a strong rebound takes place.
The current fall could last into the early part of 2016 before the said rebound takes place.
In the near term, if the CRB index can take out the 175.69 AND 186.34 levels, then we could have ‘the’ major reversal on the cards.
Sentiment wise, almost everyone is bearish on oil, gold, soft and agricultural commodities, making it ripe for a reversal.
With the wave counts almost complete, there is need to be careful and not be overly bearish in our opinion.
We believe that 2016 will be positive for most commodities especially Gold and Oil
. (Read Report)
Source : CIMB Research
Labels: Technical Analysis