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I have written a lot about select commodities and the potential for breakouts across the commodities industry.
And as long as commodities remain elevated, inflation will linger. Today, we continue that theme by looking at a long-term “weekly” chart of the Invesco Commodities ETF (DBC).
Over the past 6 years, line (1) has been major resistance for this Commodities ETF (DBC). During this time, line (1) has rejected DBC 3 times.
Over the past few weeks, though, DBC is working on a bullish breakout above this key price level at (2). Note that Relative Strength (RS) is moving higher, supporting this breakout attempt.
Bulls are hoping for a clean breakout as commodities dance just above this 6-year resistance. Stay tuned!