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Carbon Credit Demand Increases

May 25, 2024

From the Desk of Ian Culley @IanCulley

Don’t let a few days of selling pressure fool you.

Despite intense gold, copper, and crude oil pullbacks, many commodity-related assets are flashing buy signals.

For instance…

The Global Carbon ETF $KRBN:

KRBN holds a basket of European and U.S. carbon allowance futures – also known as carbon credits. Companies use these credits to offset the costs of releasing greenhouse gases.

Interestingly, the similarities between the carbon allowances, copper versus gold, and silver versus gold charts are uncanny. All three are violating multi-year downtrend lines, suggesting bullish trend reversals and a risk-on market environment.

We like KRBN long above 35, targeting 56.

That’s it for today. We’ll be back with more next week.

Thanks for reading.

Premium members, be sure to check out the Commodity Trade of the Week below.

Trade of the Week

Today, we’re outlining Nutrien $NTR, a $30B Canadian agricultural inputs company:

Nutrien recently broke a multi-year downtrend line at a crucial polarity level going back to the IPO. 

We’re long NTR above 58, targeting 75 over the coming 3-6 months. Over longer timeframes, we’re looking at a secondary objective of the former all-time highs around 117.

Thanks for reading.

We’ll be back next week with an updated COT Heatmap and Commodity Report chart deck.

As always, let us know what you think. We love hearing from you.

Allstarcharts Team


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