Is the low in Commodities in Place?

The Commodities group has been in a downtrend since the peak at 2011. Since then we have seen the Group dropping against the $USDX but recently, the group has started to show signs of bottoming. Of course bottoming is a process which there could be some instruments within the group which already have a low and the rest could still make another low to complete the corrective cycle. $XAUAUD is showing a 5 swing sequence off the lows at 2013 which is bullish and can be calling for the trend to change in the near future. Still it’s too early in most of the Instruments but by the time $XAUAUD  completes 7 swings off the lows at 2013, it would have broken above 2011 peak which will define the low in Gold against AUD, this would be bullish for Gold against other currencies and indirectly commodities group as a whole. The Commodities group is Bullish in Monthly trend and this dip is a great chance to buy the commodities. So, as for now let’s keep the eye at 2011 peak and also $XAUAUD with it’s 5 swings off the lows at 2013.

Since the peak at 2011, some instruments have dipped more than the others, for example $XAGUSD has retraced almost 76.4%  of the rally from all time low, $CL has also retraced 76.4% of the rally from all time low, so any further weakness should be limited and won’t last for long. Therefore, being aware of the extreme bearish sequences and being prepared for the turn is the best approach at this time. As always, if you found this video interesting take, you can sign up for a Free 14 day Trial of our services.

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