Commodities downtrend to resume

Since its 26 August low at 85.10, the Bloomberg Commodity Index has carved out a classic ‘abc’ bear market correction, according to Walter Zimmermann, Senior Technical Analyst at United-ICAP.

Zimmermann says a close below 86.10 from here will signal that the downtrend has resumed. Bulls need a decisive break out above 90.80 to have any hope; “Good luck with that”, says Zimmermann.

See Chart.