Commodities are at strong support zone, as we see them at the end of a higehr degree decline, down from 2022 highs
Commodities have been trading bearish for the last year, but we can see them in late stages of a higher degree bearish trend with price now approaching a strong support zone.
Commodities are actually already trying to wake up from the strong support after a potential A-B-C corrective decline from the high, or after an impulse (scenario #2). The important is that in either case, the Equal-weighted commodity index with ticker GCC is bouncing from 78,6% Fibonacci support, while the Bloomberg commodity index with ticker AW is the former wave (4) support with a potential wedge pattern.
Based on different interpretations, we assume that price can stabilize in the second half of 2023, and possibly even recover for at least a temporary period of time. At the same time, the USD can come lower, which is alos expected from an Elliott wave perspective as discussed in our webinar here.
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