CRB commodities weekly chart running with big momo. The stochastics and histogram do not share the enthusiasm for the continued move higher, but the RSI wants to see another matching high after any pull back. The chart has a cup and handle (C&H) vibe to it as shown by the neon green lines and that pattern targets this current resistance area at 370-ish. The commodities bublbe top is shown for summer 2008. Trichet actually raised rates in July 2008, the exact wrong thing to do back then and yesterday he was in the media calling for an April 2011 hike--will he be the top caller again?
Watch the price in relation to the 20 MA for hints at the longer term secular theme. A topping period is projected moving forward in this 370-400 range. After price makes another matching or higher high a month or so from now, the key will be if the negative divergence appears for the RSI. 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 finanical advisor before making any investment decision.
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