Commodities Breakout or Fakeout?

• Posted by Robert Sinn
• on July 16th, 2012

Heading into tomorrow’s Bernanke testimony the $CRB Index has a bullish look to it and appears poised for a test of the 200-day SMA from below:

 

Perhaps even more bullish than the CRB is the $WTIC chart, after today’s close above the falling 50-day moving average for the first time in nearly 3 months there is potential for an inverted head & shoulders formation to trigger with a measured move target north of $100/barrel:

 

Although the recent action offers some reasons for near term optimism it is important to remember that commodities are still in a downtrend – given the multitude of potentially market moving events, tomorrow’s action should provide some additional clarity to the above charts.

 

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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