The ongoing bear market in Commodities continue to be the lime light from last few months and many experts have been now citing the possibility of Commodity Crisis.
However, more than a year before we published in our Monthly research about Upcoming Global commodity crisis. The part of the same is shown below:
Anticipated in the month of October 2014: in “The Financial Waves Monthly update”
“CRB Index is a commodity future price index. It is currently made up of 19 commodities which are quoted on various exchanges like NYMEX, CBOT, LME, CME and COMEX. The 19 Commodities includes Aluminum, Cocoa, Coffee, Corn, Cotton, Crude Oil, Gold, Heating Oil, Lena Hogs, Live Cattle, Natural Gas, Nickel, Orange Juice, Silver, Soyabeans, Sugar, Unleaded Gas and Wheat. Thus it includes petroleum based products, Liquid Assets, Highly Liquid Assets and Diverse commodities.”
CRB Index weekly chart: (Anticipated in the month of October 2014)
CRB Index weekly chart: (Happened till 5th November 2015)
(Part of research taken from the Monthly report published in the month of October 2014)
“The current year of 2014 is again of plenty of news where we have witnessed drastic fall in various commodities like Crude oil which is trading at $78 from the highs of $107 made in the month of June 2014, Comex Gold is trading at 3 years low at $1167. CRB index is the best representative to understand the trend of Commodity and forecast where is the world commodity market headed.
In the month of October 2013, we published the following in the research on CRB Index where it clearly suggested that there will be no relief sign for commodities and down trend is likely to continue in coming years.
The recent down move has broken below triangle pattern along with Head and Shoulder which is classic reversal pattern. This suggests that wave Y has started on downside and there are no relief signs for Commodities as of now. On upside 310 will act as an important resistance now and as long as this level is intact trend remains bearish.
On downside prices can move towards 200 levels where low of 2009 is placed along with triangle target (as shown by horizontal line).
In short, CRB index looks weak at current levels. Prices can move towards 200 levels over medium term. This index clearly suggests that further selloff will be seen in Precious metals, Base metals and Energy.
Happened: Here we are when everyone is talking about the Commodity crises after it has happened. CRB index touched the target of 200 levels in the month of November 2015. The above research clearly shows the power of knowing Elliott wave pattern and how it helped us to capture the crash in commodity prices when majority were expecting hyper inflation! Interesting, Isn’t it!
During this entire down move since we mentioned about the upcoming crises:
MCX Crude prices moved lower from 6000 to 2500 levels
MCX Copper moved lower from 420 to 300 levels
MCX Zinc moved lower from 142 to 103 levels
MCX Lead moved lower from 130 to 103 levels
The above research clearly indicates how we are ahead of the crowd by following objective tools on different asset classes to forecast the path ahead. Subscribe to “The Financial Waves Monthly Update” and get to know what is happening in various asset classes. For more information visit Pricing Page.
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