{"id":57874,"date":"2011-03-23T11:12:44","date_gmt":"2011-03-23T00:12:44","guid":{"rendered":"http:\/\/www.fnarena.com\/index.php\/2011\/03\/23\/a-bullish-technical-picture-for-commodities\/"},"modified":"2011-03-23T11:12:44","modified_gmt":"2011-03-23T00:12:44","slug":"a-bullish-technical-picture-for-commodities","status":"publish","type":"post","link":"https:\/\/staging.fnarena.com\/index.php\/2011\/03\/23\/a-bullish-technical-picture-for-commodities\/","title":{"rendered":"A Bullish Technical Picture For Commodities"},"content":{"rendered":"<p>\n\t<strong>&#8211; From a technical view the bullish trend is likely to resume for commodities<br \/>\n\t&#8211; Analysts at Barclays Capital expect new highs for RJ CRB Index<br \/>\n\t&#8211; Copper chart also suggests potential new highs<\/strong><\/p>\n<p>\n\t<br \/>\n\tBy Chris Shaw<\/p>\n<p>\n\tThe initial reaction to the Japanese earthquake and tsunami was for weaker commodity prices, technical analysts at Barclays Capital noting the RJ CRB Index corrected to anticipated support around 340.<\/p>\n<p>\n\tA rising trend line that extends back seven months as well as cloud support should see a resumption of the greater bull trend in the view of the analysts. The previous two recoveries followed corrective downturns of around 7.5% and coincided with bearish momentum extremes.&nbsp;<\/p>\n<p>\n\tThis leads the analysts to suggest a rally will see the index break above resistance in the 363.50 area and make new highs. The analysts are targeting 370 initially and then the 406\/418 area, the latter target implying 24% appreciation off recent lows.<\/p>\n<p>\n\t<img decoding=\"async\" alt=\"\" src=\"http:\/\/www.fnarena.com\/ckfinder\/userfiles\/images\/barclays23-3a.jpg\" style=\"width: 700px;height: 586px\" \/><\/p>\n<p>\n\tWith respect to the LME base metals index, the technical analysts at Barclays similarly assume the greater uptrend within an existing two-year bull channel will resume. The expectation is for a clear break above the May 2007 peak at 4,500, which the analysts suggest would confirm a rally extension towards an eventual target in the 4,940 area.&nbsp;<\/p>\n<p>\n\t<img decoding=\"async\" alt=\"\" src=\"http:\/\/www.fnarena.com\/ckfinder\/userfiles\/images\/barclays23-3b.jpg\" style=\"width: 700px;height: 588px\" \/><\/p>\n<p>\n\tWithin the base metals scope, the analysts are in particular bullish on copper, seeing the current consolidation phase as a healthy pause within an ongoing bull trend. Buying interest is expected near 9,200, with any break above falling trend line resistance around 9,825 to trigger a bullish flag pattern.<\/p>\n<p>\n\tThis is seen as technical confirmation there remains&nbsp;potential for new highs, with prices expected to move through the 10,190 all-time peak. An initial target is 10,467, while the analysts have an eventual target for the flag pattern of [US$]11,215\/tonne.&nbsp;<\/p>\n<p>\n\t<img decoding=\"async\" alt=\"\" src=\"http:\/\/www.fnarena.com\/ckfinder\/userfiles\/images\/barclays23-3c.jpg\" style=\"width: 700px;height: 575px\" \/><\/p>\n<p>\n\t<strong>Technical limitations<\/strong><\/p>\n<p>\n\t<strong><span style=\"font-style: italic\">If you are reading this story through a third party distribution channel and you cannot see charts included<\/span>, we <em><span>apologise<\/span>, but technical limitations are to blame.<\/em><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Technical market analysts at Barclays Capital suggest technical indicators support expectations of a resumption of the bullish price trend for commodities.<\/p>\n","protected":false},"author":9,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7],"tags":[23],"acf":[],"_links":{"self":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/57874"}],"collection":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/comments?post=57874"}],"version-history":[{"count":0,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/posts\/57874\/revisions"}],"wp:attachment":[{"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/media?parent=57874"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/categories?post=57874"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/staging.fnarena.com\/index.php\/wp-json\/wp\/v2\/tags?post=57874"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}