Base Metals Extend Strength Relative To Commodities Overall
Mike Macdonald | Nov 25, 2014 01:42AM ET
Base Metals (via PowerShares db Base Metals Fund (NYSE:DBB)) have extended their strength relative to the background Commodity Index (PowerShares DB Commodity Index (ARCA:DBC)), with prices now pushing against the 50% retracement of the 2010-2014 fall. There is potential for extension towards the July 2011 high, but overbought monthly RSI studies suggest caution. Expectations are for consolidation to develop, but with limited downside tests.
Money managers can remain overweight Base Metals.
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