Commodity Setups Roll Call
Commodity Setups Roll Call
No time to sufficiently bathe in my glory for making that ES 1419 call yesterday night – a veritable plethora of commodity setups await my stainless steel rats. Let’s kick things off with gold:
There are signs of life but it’s now facing mighty resistance in the form of two entangled moving average – the 25-day and 100-day. If you are a noob here you may be wondering why I am using those and my answer is: because they work!
I would be short here until a breach of about 1688 – very simple setup and the downside target here is near 1646 – for now. If we see a breach higher then I would actually flip that trade as this may turn into a much more juicy setup with a target potential near 1740. Either way – we win. Okay, now that you’re warmed up – let’s dive into the good stuff:
[amprotect=nonmember] More charts and cynical commentary below for anyone donning a secret decoder ring. If you are interested in becoming a Gold member then don’t waste time and sign up here. And if you are a Zero or Geronimo subscriber it includes access to all Gold posts, so you actually get double the bang for your buck.[/amprotect] [amprotect=1,13,9,12,5]
Silver in almost an identical situation to gold except that there is more support waiting below. It’s very much possible that it will lead the way here and perhaps even give you an early warning to get out of your gold short trade, assuming you take it.
Copper has been on a tear today and it’s now reaching the upper boundary of its trading range. And under normal circumstances I would be short here based on that upper BB line touch. And maybe I will but only with a very tight stop and constant monitoring of the situation. Here’s why:
Stockcharts.com does not update copper during the session on the daily – at least not for my subscription. So I had to resort to painting the current level on Friday’s version which I also showed you over the weekend. The implications here are clear. This could still be a fake breach but unless we see an instant reversal here this is bullish as heck.
In case this morning’s gyration in equities didn’t give you an adrenalin boost here’s some caffeine to get you going. Coffee is pushing against its 25-day SMA and that’s news because it hasn’t been even close for over a month. Watch this carefully and consider being long here if we see a push above 188. Target range? Waaaay up there – 205ish 😉
Soybeans headed for Lake Havasu and has officially gone wild ahead of spring break. Way out of both BBs and that short squeeze must have imposed some mighty pain. I would be short here as soon as I see a bearish candle – until that happens I’ll play dirty old man and just watch the top come off.
Bonds – the 30-year is painting an inside candle after quite some ranges in the past two sessions. I would be long here on a retest of that NLSL – assuming it holds of course.
But the more interesting bond chart is the 10-year. Friday bestowed us with a bearish engulfing candle after a touch of the 25-day SMA. Today we’re getting an inside candle and I would be short tomorrow if we take out today’s lows. And I would also consider adding shorts if we make it below that NLSL. One can dream…
That should keep you guys busy for a while.
[/amprotect]Cheers,
