Several signals suggest commodities are ready to rally, according to James Dima, technical analyst at Marex Spectron.
Looking at a Chart of the Bloomberg Commodity Index (BCOM), Dima notes a positive MACD crossover was achieved when the market closed above 74.6571 recently. With the MACD (lower pane) also at a distressed level (i.e. well below the zero line), Dima says there is a clear bullish signal (green lines are bullish, red lines are bearish). Pivotal resistance exists at the 20-day moving average near 76.1500 (black line).
Similarly, a positive MACD crossover appeared for 3-months LME Aluminum when it closed above 1723 (see Chart 2) simultaneous to the MACD reaching distressed levels (lower pane). The purple lines highlight similar signals that have been effective over the last six months.
The signal for Gold, however, is less clear (see Chart 3 of J20 Gold). Dima says the Bollinger Bands (red lines) are into an historically narrow width. When this occurs, he says it typically signifies that a market is about to break from its current trading range, though the direction is uncertain. Prior signals are highlighted via purple lines.