There have been a couple of notable developments in commodity related charts in the last couple of days:
Alcoa (AA) has formed a head & shoulders bottom during the last couple of months. The neckline of this H&S bottom lies at $9.50-$9.60 with a breakout above $9.60 targeting the falling 200-day moving average near $10.75.
A 3rd test of support near ~$26 in OIH has yielded what appears to be a failed breakdown. Today’s 2.76% rally confirms yesterday’s bullish hammer reversal candlestick higher. The stage is set for one of the worst performing sectors of the year (-26%) to pare some of its losses during the final trading sessions of 2015.