Monday, June 09, 2014

Daily Commodities Report:

Agriculture: DBAThe new channel on the hourly chart is taking shape nicely. It's a decent width so it shouldn't end prematurely. A convincing breakout hasn't been see yet on the daily chart, though.

Coal: KOL
On the hourly chart a signal to take some profits has appeared. It has risen fairly fast and furious so it is a good idea. Eventually this will break down. In the longer term though I still believe that it can reach $19.22 before that happens.

Coffee: JO
JO looks 'stuck' at the moment. Recall I placed the daily "buy" arrow at some point in the future, a little closer to the upper limit of the declining channel. Right now JO is characterized by horizontal movement until we get to that point. On an hourly basis I remain "neutral."

Commodities Index: DBC
DBC has started the day off rather well. It has rejoined the larger (light blue) descending channel (hourly chart). It's currently resting at the upper limit of the smaller ascending dark blue channel. We can expect it to retrace a little or oscillate in this region, but the gap up this morning is a "bullish" indication. Just to warn everyone on the daily chart, we do have three taps on the lower limit of the blue rising channel so this ascent will abort at some point. I may have had very strong bullish inclinations towards DBC but I would like to stress caution now since the red declining channel on the daily chart is "in charge."

Copper: JJC
I think an intermediate bottom is in for JJC so I have placed a "buy" arrow on the hourly chart. The daily chart still looks like further downside is imminent. Probably not advisable to be trying to profit from a bottoming commodity, but at least the arrow will show that transition is taking place.

Corn: CORN
Further horizontal movement can be expected. I issued a future "buy" signal on the daily chart but I don't think it has been confirmed on the hourly or daily chart yet.

Cotton: BAL
I may have issued the "buy" on cotton a little early on the hourly chart, but looking at the daily chart I like what I see. The channel has been widened  on the hourly chart to accommodate the open down this morning. My buy arrow on the daily chart is as far out as possible within the declining red channel, so more convincing signs of a transition should be imminent.

Crude Oil: USO
Presented without comment (I have no idea what's going here).

Gold: GLD
Presented without comment.

Silver: SLV
Presented without comment ("sell" on the hourly).

Lithium: LIT
Listed as a "sell." We've had a good run but it's time to take profits.

Natural Gas: UNG
I'm not sure if we are actually going to approach the resistance of $26.30 on the hourly chart, but according to the daily chart it's almost sell time. I expect some horizontal movement at this level before an eventual decline back to $24.00.

Palladium: PALL
Presented without comment.

Platinum: PPLT
I think we finally have our confirmed "buy" signal. It is quite steep but rather wide so I don't think we're too late.

Sugar: SGG
SGG has had a quiet day. I still think fantastic things are in store in a week or two, SGG just needs to overcome this initial declining triangle. It's currently hanging onto the recurrent horizontal resistance level for dear life.

Uranium: URA
Listed as a "buy." I think I mentioned I wanted to see a confirmation signal - well, I think we have it now. The daily chart is looking quite good.

Wheat: WEAT
I think we saw the beginning of a new transition today to an upward channel. I would say this is a "buy" now, even though there still might be a bit of a decline. On the daily charts we have movement outside the channel. I'd like to see another open and close outside on the daily for me to be able to say, "a new transition has appeared."

Jakob Richardson © 2014