Are we entering a commodity super-cycle?Definition of a commodity super-cycle:
Commodity super cycles are decade-long periods in which commodities trade above their long-term price trend.
Technical Analysis:
Using a weekly candlestick to see the bigger picture.
DBC is breaking out of a 10 year long downtrend.
On Balance Volume is supportive, as it is also breaking higher, reaching levels from a decade before.
We are breaking and testing $18.5, which is a very long-term resistance; now potentially turning into support.
This is a long-term setup.
R1, R2 and R3 are potential targets to take some profits.
Fundamental factors:
Weakening dollar
Supportive central banks
Fiscal stimulus geared for infrastructure spending
Pent-up demand once as global economies re-open.
Government and private companies increasingly pledging carbon reduction measures.
Inflation ticking higher, as the Fed is taking a new approach of waiting, rather than anticipating, as it has done in the past.
