Possible Bullish Breakout In The CRB Index

In the above chart we have the CRB index on top and the U.S. Dollar below that. Notice how the the dollar has made a 2 year low today. If the dollar continues to fall, it will be a strong catalyst for higher commodity prices.

Notice the consolidations that have taken place just prior to key levels. When you see a consolidation like in the above chart, it increases the odds of a successful breakout. Of course nothing works 100% of the time, but this should be a reliable indication that the dollar will continue lower and that commodities will move higher.

Gold was down today, but I have a feeling you will see gold,silver, platinum and palladium continue to rally in the days to come. Copper is already moving significantly higher and oil looks like it's beginning another leg up.. As you can tell, I am still very bullish on commodities.