CRB Commodities Daily Chart H&S Two Leg Bear Flag Patterns Positive Divergence

CRB commodities daily chart siting on top of the 200 MA support. The blue lines show positive divergence lined up now so price will want to head back up and recover. The two leg bear flag, or pennant, is in play now, from 370 to 335 was 35 difference, then, after the consolidation zone, the second leg began at 355, thus, 355-35=320 target.

So the 200 MA is trying to support price now, but the bear flag wants to see a little lower, say, the 320-330 area is the bounce zone. The pink H&S is in play now as well, the neck line at 335 failed, this neck line was also the botom of the first leg of the bear flag. Thus, the H&S targets 300-ish, the 295-305 is a hefty support zone and, considering the sustained weakness showing on the weekly charts, a likely target as we move towards Labor Day.

Back to the near term, however, markets should be buoyant in front of the holiday weekend coming, so a bounce is in order now; either from the 200 MA here, or, in this 320-330 area as described above. After price takes a respite from the selling over the last month, the weekly weakness will resume as July moves into August, and the H&S 300 target zone comes into focus, perhaps as the pool's close for summer, or sooner. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your financial advisor before making any investment decision.