The commodity wave charts we tack suggest what we may already know, commodities seem poised for a bounce...here is a look at a few...
Gold Futures Daily: Rally from a wedge pattern...targets to 1,333; then 1,420...swing resistance at 1,300; then 1,380...
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Copper Futures Daily:Confluence support held near 1.930...with divergence into the low (RSI divergence lower pane of the chart); first target to 2.532...
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Natural Gas Futures Daily: Still well below its long-term trend line resistance, but coming into a key extension target at 1.587, i.e. wave A = wave C...again seeing divergence into the low...
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Oil Futures: Not sure how to label the longer term view yet; but interesting things going on here technically. 1) For the first time since 7/22/14 do we have a break of the downtrend resistance line (dotted red); and the 72-day moving average breaking above said line: 2) Wave A almost exactly equal to the last Wave down labeled C, which targeted a low of 26.17 (actual low was 26.05); 3) equivalence in time on wave A & C, being 77 days and 85 days, respectively; and 4) divergence into the low as seen in the RSI (lower pane of the chart)...heading into first major resistance at Wave A low 38.18...and swing high at 37.79...a rest here then rally toward 50$
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Stock vs. Commodities Ratio: We have been tracking this ratio (comparing relative performance of stocks versus the Thomson/Reuters Commodities Index) for a while now; it gave us a hint in the past the commodities cycle was over. Now the ratio seems to be hitting some resistance at a key retracement level--76.8%. It would be some confirmation of the charts above...stay tuned...
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