Chart analyst: Buy this breakout

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Just when most investors expected commodities were all going to zero, we saw two weeks of stabilization with meaningful bounces in WTI crude, precious and base metals. Moreover, soft commodities such as sugar, frozen orange juice, coffee and lumber made above-average gains since October.

Weakness in the U.S. dollar can be partly attributed to this sudden pickup in commodity prices. The minor peak in the U.S. dollar currency index in early December directly coincided with many commodities and commodity-related names accelerating higher. While the intermediate bullish uptrend in the dollar remains intact, technicals show additional near-term weakness looks likely into early 2016. This should coincide with many of the commodities and commodity names rallying further from extreme oversold territory.

Here's how to trade this move.