The medium to longer term outlook is quite bullish. Although price action since April has been lack lustre, this trading range is part of a longer term basing pattern and probable trend reversal higher. Thus far the MA200 has functioned as good support (~83) and indicators look quite friendly.
Increasing long-exposure is justified as long as the support zone around 81/82 holds out. On the upside, clearing 87.50 should get things moving. Main target for the next 3-6 months comes in at 100.40.
- Current trend: neutral/basing
- Outlook/expectations: major trend reversal, start of new uptrend
- Strategy: long-entry (medium-term)
- Support: 81.90 / 72.45
- Resistance: 87.50 / 90.35 / 100.40* / 105.30
Weekly chart Bloomberg Commodity Index