More Strength Lies Ahead For Commodities!

 

By Tuesday`s close the United States Commodity Index Fund (USCI) shares vaporized their most recent resistance line on the daily chart. This bullish price breakout and next daily buy signal was supported by above average daily volume, as you can see in the lower window of this daily USCI chart with stand of Tuesday:

 

 

The United States Commodity Index Fund (USCI) tracks an equal-weighted index of 14 commodity futures contracts selected based on their level of backwardation and price momentum.


Each month, it picks the seven commodities with the greatest backwardation (or least contango) and the seven commodities with the greatest 12-month price momentum, with the caveat that it holds at least one precious metal, industrial metal, energy, livestock, soft, and grain commodity. From there, it equally weights the futures contract on each commodity with the greatest backwardation or least contango. The 14 commodity contracts are selected from a pool of 27 eligible futures contract and are determined by quant analysis relating to its prices. The USCI Segment Benchmark is: Industrial Metals 25.00%, Energy 25.00%, Livestock 25.00%, Agriculture 16.67%, Precious Metals 8.33%.


You may agree with me that the recent 1-month consolidation period after the yearly highs formed an almost perfectly balanced Triangle. On Tuedsday, the red resistance line of the Triangle, which had been tested negative 4 to 5 times until then, was impressively skipped to the upside, triggered by a rather large upward gap. Cause shares on Tuesday closed near the high, supported by volume this daily buy signal should have legs!


As a consequence of this obvious volume backed = stronger Triangle buy signal, the steep surge should continue till the so far standing bull market high of 61.89$ is reached and maybe slightly overcome:


==> No brainer first shortterm uptarget is the so far year high main resistance magnet at 61.89$. This first uptarget usually will be worked off until end of April 2022, at latest!


Also the weekly chart situation together with the currently most valid and very solid looking weekly GUNNER24 Up Setup is easy to interpret after the USCI shares closed the week at 58.94$ and delivered their highest weekly close of the bull market:

 

 

Setup is a quite typical and therefore quite classic 13-Fib number Candle weekly up. It starts measuring to the upside at the # 1-Summer Lows of the past year 2021. This reached # 1 // August 2021 Low means a next higher important bull market low.


The two blue arrows confirm the former resistance function of the Blue Arc, which once finally overcome triggered another many months long bull market leg and rally into so far 61.89$ bull market high.


This Blue Arc setting above automatically offers that an intermediate cycle top arrived at first square line resistance, I`ve highlighted with the orange arrow and the former to the T importance of some double arc lines, which I`ve highlighted with the 2 red resistance & 1 green support arrows.


The week candle, resposible for printing the year highs => a weekly spike high, was held by back by the upper line of 3rd double arc resistance energy at the opening auction. That`s a confirmation of why the 3rd double arc is an important resistance area for the shares.


After a precise = very successful and = very classic backtest of the upper line of 2nd double arc support rail 4 week candles ago (the reached Triangle Low!) another strong upcycle began what Thursday closed far above the upper line of 3rd double arc resistance, by this firing the highest weekly close of the bull tun and also a next strong weekly GUNNER24 Buy Candle.


This seen weekly buy signal together with the delivered daily Triangle buy signal activates the bull market continuation into next higher weekly GUNNER24 Double Arc uptarget what is the lower line of 4th double arc, which runs at the 63$ surroundings for the coming month of May.


==> Think, the lower line of 4th double arc uptarget magnet will be finally worked off in the course of May 2022 as long as the nicely confirmed 2*1 Gann Angle keeps on pushing higher. And why should this main bull market support suddenly fail to hold over the coming weeks?


==> Shortterm weekly GUNNER24 Uptarget at 63.00$!


==> My advise is to buy USCI shares at the naturally given GUNNER24 Supports at below!


Be a part of our exclusive sworn GUNNER24 Trader Community – now... I try to make you rich!

 

 

Click the button below and order the GUNNER24 Trade of the Day - $49.90 US a month.

 

Be prepared!

 

Eduard Altmann