Keep A Sharp Eye On Commodities!

In a follow-up to this article (https://www.themaven.net/seanhyman/technical-analysis/this-chart-pattern-gives-a-hint-that-a-huge-commodity-move-may-be-in-the-works-KHRMrTqgp0GvkxAbGkHEzw), I wanted to turn your attention back to this pattern because it's at a crucial point.

The (bullish) inverse head and shoulders pattern has broken above its black neckline which completes the pattern. Therefore, it's initial pullback should be supported by the neckline (around the 179-180ish area) which it's at now.

If it holds that line, we could see the start of a tremendous push higher for commodities and also commodity-stocks.

There's a good chance this happens. After all, the 50-day moving average is trending higher and it will likely use that as support also. The MACD has broken its downtrend line and the MACD continues to trade above its zero line (all bullish signs). And the RSI is getting into the oversold territory again, yet still with higher lows. So those are all good signs as well.

And if the overall push higher continues with the price of the CRB Commodity Index, then the 50-day moving average should cross above the 200-day moving average, forming a bullish "golden cross" pattern (which tends to trigger a lot of large institutions to buy as well).

Now...should the price drop materially below the black neckline, it doesn't mean the bullish trend is over. After all, the real bottom was back in January of 2016 and then it put in a major "higher low" in June of 2017. So the CRB index is likely to hold above those June lows. But it's still a bullish sign for the index as long as the index doesn't make new long-term lows below the January 2016 low of 154.85.

But watch this pattern closely. It updates with a one day lag on stockcharts.com under symbol $CRB. If the black neckline area of support holds, we could see commodities and commodity-stocks get a nice turbo-boost over the coming months ahead.

God bless!

Hi Sean. We are at a point where the drum you've been beating all along is visible to all. What you preach is long term, where 'the masses' as you call them want short term gratification. The CRB did indeed bounce off the 50 Day & a golden cross is imminent.

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If you are lucky enough to have found this site or followed Sean for a short time it is hear and now, in my opinion, we need to listen.

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Thank you so much. I appreciate that. Means a lot from someone who's followed me for a while now.

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