Wednesday, May 28, 2014

Daily Commodities Report

Coal: KOL
KOL hasn't been a particularly happy player either. Contact with the lower resistance band looks inevitable as all EMA's, MACD and TRIX indicators are showing a downtrend. I can't say whether or not this channel will hold.

Coffee: JO
JO is also in a tight fall. I expect the channel to widen a little but momentum seems sure that this will go to $34.00. The slope of the channel has been changed a little now that more data is available.

Copper: JJC
Nothing new to report for JJC.

Corn: CORN
CORN's steep decline continues. Reaching $31.60 is assured.

Crude Oil: USO
Oil is it's middle band much like PALL. I expect a new channel to develop however direction can

Natural Gas: UNG

Gold: GLD
At the open gold gaped downwards. I knew the channel was going to breakdown but I didn't think it was going to come this soon and with such ferocity. If you compare it to silver, silver had gradually slid down perhaps leading some to think that perhaps a bounce was possible. Not in the case of gold. We have a steep declining channel. Unfortunately there isn't enough data to make out what the new channel will look like, however GLD falling to $120 is entirely within the realm of possibility (and likely beyond). The pattern does bear a resemblance to the current fall that CORN has been experiencing for the last two weeks - a tight, narrow channel with some brief respites along the way but generally an uninterrupted sharp slide downward. The breakout people are hoping for in gold I think is still about 12 months away.
Lithium: LIT
Lithium has also been a positive note in an otherwise bleak landscape. The upper channel had to be adjusted a bit to reflect its fantastic open. The red channel is confirmed and we shall now expect this to continue marching onwards and upwards.

Palladium: PALL
PALL has begun trending downwards. I sincerely feel that this current upward channel since early March is complete. Of course we are still only at the middle band so let's see what happens. Please bear in mind that there are already three or four taps on the lower channel so a break at around $79.00 seems most likely in my mind.

Siver: SLV
The tentative downward trend has been confirmed and the new red daily channel I have drawn for it is validated. I'm not really sure how far this is going to decline! Please read my notes for GLD above as they relate to the movement of SLV.

Sugar: SGG
SGG was a disappointment this morning. A decline of 2.66% which has come back modestly to about 2.22%. On the hourly chart shown a breakdown would appear to have taken place, however looking at the daily chart (not shown) it is currently right on the lower resistance line. This is currently the only thing I have a trade in and have stuck by it. I do believe a bounce or at least some oscillation along the lower resistance line will take place. I alluded to this possibility last week after it's breakout from the intermediate triangle. Breakout from the larger triangle looks like it's still two months away.

Uranium: URA
URA has been an absolute sweetheart today! Earlier last week I expected a bounce of the lower resistance line and that was exactly what we got. I hope some of you took advantage of the buying opportunity . Near term resistance will be met at around $14.75. It could break out from there (much like LIT has) or decline a little while longer and bounce/breakout off of the horizontal line at $14.00. Please exercise caution when approaching $14.75 by taking some profits and there is no certainty of breakout. What is certain is staying above $14.00, however.