TBT $42.52: Tests 17-month falling trendline

TBT rallied off 40.57 (March 30, 2015 low) to test 17-month falling trendline. Bullish indicators suggest a breakout is favored ahead of further strength towards 47.54 (March 2, 2015 high). Clearance above the latter would confirm basing and trigger further gains towards 53.63 (November 13, 2014 range high). However, a breakdown below 40.57 would signal false break and shift the focus back to 38.15 (January 26, 2015 record low).

Outlook:
Short term: Bullish
Long term: Neutral