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The chart above looks at Steel ETF (SLX) over the past 8-years. SLX has done very well the past couple of years inside of rising channel (1). The rally now has it testing 2012, 2013 & 2014 highs, that so far has been strong as steel!

If SLX can breakout at (2), it would suggest that a key breakout is taking place and could attract buyers. If it would break out, could it be suggesting something bigger is taking place in the commodities space or be sending an important macro message?

Below looks at the TR commodity index over the past 50-years-

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The commodities index has created a series of higher lows over the past couple of years and is now testing the top of a 7-year falling channel. If it would breakout at (1), it should attract buyers and could suggest that a long-term cycle of commodities might have bottomed.