Commodity Weekly 10 December 2013

S&P GSCI Total Return Index

Erosion of 200 day ma suggests unfinished business on the topside

The S&P GSCI Total Return Index eroded its 3 month downtrend and has cleared the 55 and 200 day ma. While we acknowledge that the recent strength is regarded as corrective only still, it is possible that we could see this extend a little further.
The move will shortly encounter the 50% retracement at 4872, but much tougher resistance is located at 4930/41, which is the 61.8% retracement and the high seen in October. We look for this to hold the topside and provoke failure.
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