In This Edition: The individual contracts traded within the different commodity sectors, Base Metals, Precious Metals and Energy have been diverging over the shorter-term but are now resynchronising following the completion of corrective declines from the February highs in Base Metals, corrective lows ending smaller pullbacks in Precious Metals whilst Crude/Brent oil are in the process of ending triangle patterns that began almost a year ago. What does this mean? – It means that a uniform, bullish set-up has occurred from which large upside gains can be expected to unfold in the months ahead.
This latest edition of the Elliott Wave Commodities Outlook report updates how corrective patterns have ended the CRB-Cash index’s decline from last year’s high whilst shorter-term retracements for Copper align in preparedness for the next push higher. A similar corrective phase is also ending for Lead, Zinc and Nickel.
Precious metals are continuing to build higher-highs, higher-lows, the definition of an uptrend that resumed last December. Of particular interest is how the bullish picture is developing for Precious Metal Miners, so we’ll be taking a special look at the GDX and XAU indices.
Crude/Brent oil have managed to eliminate continued downside risk following the late-May OPEC/non-OPEC meeting which extended production cutbacks to March ’18. The Elliott Wave corrective pattern from last year’s high changes accordingly but it projects a very bullish outlook for the remainder of this year.