CRB Commodities Weekly Chart C&H Two Leg Bull Flag Overbot Rising Wedge Negative Divergence

CRB commodities weekly chart shows two key stock chart patterns that reached projections. First, the blue cup and handle showing the bottom of the cup at 200, the top of the C&H and breakout level of 280, thus 80 difference, so a target of 360 was the projection. Bingo.

Second, the red two leg bull flag which started at 200. Using whole numbers to keep things easy to understand, the first leg reached 300 for a 100 length. As expected for this pattern, a sideways consolidation period begins with prices leaking slightly south, this gives CRB time to regroup for the second leg up. The consolidation flag finished at 250 when price started to become buoyant again, thus, 250+100=350 target. Bingo.

Since major chart patterns are satisfied, what does the near term action say? Over the last couple months, since the February top, we now have a higher high in place with overbot conditions, a rising wedge and negative divergence across all indicators. Add to this bearish set up Trichet raising rates a la his July 2008 mistake, the risk reward is in the bears favor. CRB is cooked. Last week shows a modest 2% loss which only amounts to a pimple on the commodity bulls' rear, but the stronger selling is at the doorstep now.

Institutions and hedgies, however, need to keep the happy media talk going to collect all the profits and pass the shares off to Joe Sucka getting caught up in the commmodity hype. Dr. Copper is in the emergency room. Last summer every trader and his bro touted the copper indicator since it leads and did lead the bull market rally into 2011, but, now that the doctor has become ill and rolling over, all you hear is crickets, again, the smart money needs the dumb money to take these CRB shares off their hands since the end is at hand. 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.