GOLDMAN SACHS COMMODITY INDEX

If price is above the 200 day moving average and the RSI is above 50, then it is better to have a bullish bias while analyzing a chart. 200 day moving average is the industry standard. Which ever method you use to calculate, simple, weighted or exponential it is a road map for me. With the help of the energy sector GSCI pushed back above its 200 day moving average. After its resilience around its long-term moving average I have adjusted my 3 year-long trend channel’s lower boundary and found out that October and December lows actually found support at the lower boundary of the trend channel. And with the price pushing back above the 200 day moving average all i can say for now is that the 3 year-long uptrend is still intact.

In the short-term we have resistance at 680 levels. A break above 680 levels will be the first “higher high” since April 2011 (on the weekly scale). So this should be regarded as a bullish signal. Lower boundary of the trend channel is strong support at 630 levels. Knowing that the lower boundary worked as a strong support in October and December, a violation of this technical level will change the positive technical outlook and will be an important negative signal.