Commodities Double Bottom?
Looking at Commodities via the Thomson Reuters/CoreCommodity CRB Index (TRJEFFCRB), an index that tracks 19 commodities including coca, coffee, copper, corn, gold, orange juice, soybeans, unleaded gas, wheat, etc, to see if the 1999 bottom will continue to hold as support today.
We can see price has currently found support on the bullish order block formed back in 1999, rebounding off that block and creating what could turn out to be a double bottom.
The trend is bearish, as confirmed by our Range MA indicator, and our Bull/Bear Power indicator even signaled a downtrend via a red arrow at almost the perfect local top on Jan 6, 2020.
Right now the question is should we be looking for a reversal of the bearish trend and close short positions (for example puts on commodities ETFs that are reflective of this index)?
To get confirmation of a reversal of the bearish trend, we will be looking for a long signal from the Bull/Bear power indicator as would be represented by a green arrow on the chart.
We can see price has currently found support on the bullish order block formed back in 1999, rebounding off that block and creating what could turn out to be a double bottom.
The trend is bearish, as confirmed by our Range MA indicator, and our Bull/Bear Power indicator even signaled a downtrend via a red arrow at almost the perfect local top on Jan 6, 2020.
Right now the question is should we be looking for a reversal of the bearish trend and close short positions (for example puts on commodities ETFs that are reflective of this index)?
To get confirmation of a reversal of the bearish trend, we will be looking for a long signal from the Bull/Bear power indicator as would be represented by a green arrow on the chart.