Commodity strength has been most prominent in Industrial Commodities. The BBG Industrial Metals index has reinforced its existing major base by breaking with ease its long-term confirmed downtrend from the 2007 peak and strategists at Credit Suisse maintain a core bullish outlook for Industrial Metals.
“The BBG Industrial Metals index has reinforced its major base, seen established above 259.86/261.04, by breaking with ease its long-term confirmed downtrend from the 2007 peak.”
“We maintain a core bullish outlook for a move back to the 2018 high and 38.2% retracement of the entire 2007/2015 bear market and 300.12/305.85. Whilst this should clearly be respected again, we are biased to a move above here also, with resistance then seen next at 327.58, ahead of the 50% retracement at 340.58.”
“Industrial Metals are expected to extend their strong outperformance trend relative to the broader Commodity universe.”