Monday, June 27, 2011

Commodity - Bearish


It appeared to me that the CRB commodity index has formed a 'Head and Shoulders' reversal pattern and it has dropped below its neckline last week. Its minimum target is the 300 points level. A weak commodity indicates poor demand and a slow down in industrial activity. Stocks indices usually go down together with CRB index especially the mining and agriculture sectors.


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