The CRB Index
posted Aug 20, 2006 at 12:08PM
CRB Index Daily
CRB Index Weekly
The bears have really gotten excited over the CRB's breaching of the 200 dma as well as the pattern of lower highs and lower lows.
The price action though still falls into the realm of correction, which was only natural given how heated and frenzied things got.
It is currently looking to test it's 65 week moving average and it will do so in oversold conditions on the daily chart. In the gold sector this was always consistent with excellent opportunities to buy.
If it does breach that level we will probably get a last burst of technical selling which will bottom out the stochastics brothers. Even if we had embarked on a bear market, which I don't prescribed to, the index would certainly then undego at the least a strong bounce.