Tuesday, June 23, 2009

CRB (Reuters/Jefferies CRB Index) is falling over a significant Support level (Close 246.07)

CRB Index closed at 246.07 in a violent selloff session along with major stock indices.

The importance of this Support level is significant based on the book example of a long term Resistance now turned Support. The chart presents evidence of 3 failed tests to rise above that level sinceNovember 2008.

The other significant support is the 200-Day MA at 245.31. Technical picture however is convincingly bearish with RSI and MACD in confluence both gave sell signalsa week ago and the move down now accelerates. Next Support is located at 230 as shown on he chart.

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