This is getting quite exciting really. I know it’s been like a graveyard in here recently, but that’s telling us something. This is exactly what you get after 2 years of going nowhere in a market. It could go on for another 5 to 10 years of course, but I’m betting on a big move in the next 6 months. I decided to take a look at Dr Copper to see if there are any possible clues there, and then the broader CRB (commodities index). Here’s what I see…

I just can’t see how an upside breakout and successful backtest can be seen as bearish in any way whatsoever. A $5.50 target is what that chart is telling me.  It may take another price retreat before the final push through the hot zone into clear air.

Next, I wanted to see how the broader commodities space was looking. This is what I’m seeing on the CRB chart…

Once again, I just can’t see any bearish signs. I’ve tried, but I just can’t see it. We’re already at historical lows. The indicators are in an ideal position to support an upside breakout. I then zoomed into the more recent price action on the CRB index for more immediate clues (again, keeping an open mind, and looking for reasons to be bearish)…

It’s no good – I’ve completely failed as a bear. All I’m seeing is bull 😉

If I’m right, we are in a position, both in time and price that would be conducive to a rally of historic proportions. That doesn’t mean it’ll happen of course, just that it’s within the realms of possibility.

Hope that’s helped to clear some of the tumbleweeds in here 🙂