Commodities have spent the majority of the past 16-years inside of rising channel (1). Despite this long-term uptrend that remains in play, they have been declining since they hit the top of this channel back in 2011.

The decline over the past 7-years has the TR Equal weight commodity index testing rising channel support at (2), where it could be creating a bullish ascending triangle pattern (flat tops and rising bottoms).

A very important support test is in play currently. Commodity bulls do not want to see this long-term support channel broken to the downside.

If commodities can rally and breakout at (3), the “Measured Move” suggests they could rally at least 10%.

This index is in a tight jam between rising support and horizontal resistance. Something has to give soon. If its an upside breakout, it would suggest a nice rally for this sector that has struggled for years and investors would want to be on board if it happens.




How The Recent Decline In Stocks Looks "Eerily" Like Major Bear Markets Of The Past