CNBC’s Jim Cramer on Tuesday said that certain commodities could make a comeback soon.
“The charts, as interpreted by Carley Garner, tell us that the boom and bust cycle in commodities never stops, and right now that’s good news for oil, … natural gas and wheat prices,” he said.
Commodities markets were volatile last year as Russia’s invasion of Ukraine, economic issues in the U.S. and China and adverse weather shook investor sentiment and diminished supply. Prices of oil, natural gas and wheat roared higher in the first half of the year but stabilized somewhat in the later half as the Federal Reserve raised interest rates and pandemic-driven supply snags resolved.
To explain Garner’s analysis, Cramer examined the weekly chart of West Texas Intermediate crude, the U.S. benchmark for oil.
He pointed out that Garner was adamant last year that oil would return to its previous trading range once sanctioned Russian oil was rerouted to India and China, and the chart shows that her prediction came true.
Cramer added that she expects oil this year to move between $65 to $70 a barrel on the low end, and to perhaps the mid-$90s and low $100s on the high-end.
“She expects this channel to be resilient, and that is why she recommends buying the dips,” he said.
For more analysis, watch Cramer’s full explanation below.
