One of the reasons we’re so bullish on the Venture Exchange right now is the action we’re seeing across a broad range of commodities. This morning, John examines charts for the CRB Index, Copper, Crude Oil and Natural Gas to give us a technical perspective on what’s happening in these markets (yesterday, John provided an updated Gold chart in the Week In Review and tomorrow morning he’ll be updating Silver).
1. CRB Index (Thomson Reuters/Jefferies)
For more than 50 years, this world-renowned index has served as the most widely recognized measure of global commodities markets. And what the CRB chart is telling us right now is that commodities are heating up (breakout in February) and should finish the first quarter on a very strong note.
2. Copper
Copper is a reliable leading indicator of the global economy, so the fact it has performed well so far this year is a very encouraging sign. Copper recently found support at the EMA(20), as we had anticipated, and it’s likely just a matter of time before it breaks through the resistance band as shown below. January-April is normally the seasonally strong period for Copper. On the fundamental side, global end-user demand gained traction across the board in January and preliminary data for February showed further improvement in China and Europe.
3. Crude Oil
U.S. light sweet Crude has posted its longest streak of daily gains (7) since a 10-day stretch starting in December, 2009. The chart shows a technical breakout last week, so a move to John’s Fibonacci target of $121.45 seems very plausible before a correction sets in. Unfortunately, the environmental cult – the one Obama is pandering to, built around the concept of “reverence for the Earth” as opposed to reverence for our Creator – loves higher oil prices as this misguided group believes this advances their radical Green Agenda. Of course what we need to do is actually produce more oil – increase supply – and that includes aggressive drilling in the best jurisdictions and fast-tracking critically important projects such as Keystone. The “Iran Factor” is certainly helping to put a premium on Crude at the moment but as evil as the Iranian regime is, its bark is worse than its bite. Iran can be put into submission.
4. Natural Gas
John’s 11-year monthly chart for Natural Gas shows there is likely money to be made in this market right now on the long side. Higher prices are on the way.
Hi Jon,
One of my friend just bought some GQC. I rebember when it was our favorive, they seem to have a better understanding of l’escandalosa with better results since the ip survey. Are you still bullish on goldquest wich is sitting at 0.11$
Thanks!
Comment by martin — February 26, 2012 @ 2:20 pm
Very bullish, martin….it’s a steal for patient investors at 10-11 cents….impossible to say exactly when it will make a major move but it will I’m sure……the only knock against GQC is that they don’t spend enough on IR………
Comment by Jon - BMR — February 26, 2012 @ 7:06 pm