Monday, May 09, 2011

CRB Index Long Due Correction

The long and strong weekly uptrend in CRB Index mentioned in a previous post could not push past the magic 61.8% Fib retracement (turned unbreakable resistance diligently tested by the index during the last two months) and broke down with fireworks.

Nevertheless, we see still little damage to the weekly chart above despite the long red candle down. The steep uptrend just broken is usually replaced by a less steep one and the ongoing correction could be an opportunity to buy.

Looking at a daily chart below we see a 3-push higher bearish pattern with potential correction target around 320 which may be a good risk/reward level to go long.

No comments: