S&P GSCI (COMMODITY INDEX)

The chart above shows the Goldman Sachs Commodity Index for the past 5 years. Different from other updates on this post I wanted to show that the uptrend in commodities is still intact and continues in a clear parallel trend channel. In the last few months we have seen commodities pulling back to their 200 day moving averages and finding support. This was a mean-reversion and it might be over. 650 level will be strong support in the following months (lower boundary of the trend channel and the 200 day moving average). Uptrend is still intact and could target 800 levels.