Monday, February 16, 2015

Commodities Report: Daily and Weekly Charts

A turnover in commodities is being seen and I can't quite figure out why. I am not happy about the general health of the global economy and yet bottoms that I have been speculating on for several weeks now appear to being actually taking place! This is all very odd but precious metals (GLD, SLV, PALL, PPLT) are all looking great. Even copper and steal don't look too bad. I was predicting a catastrophic fall in timber but to my surprise (and annoyance since there was a computer glitch with the upper resistance line) it has broken up. 

Agriculture: DBA
  • DBA still listed as a speculative buy.
  • A bounce is likely to be observed which is why I think this speculative. Let's wait to see what happens when it breaks the red channel.

Aluminum: JJU
  • JJU is still listed as a short
  • We've had a small bounce off of $17.50 but have very tight stops set up, please.  
  • EMA's on the weekly chart are unfavorably aligned so I'm not really excited about JJU for the time being.

Coal: KOL
  • KOL is listed as a neutral
  • We should see a bounce on the weekly chart to the opposing channel line, but after that I'm not sure what will happen. My guess it will continue downwards and contact the dotted blue line eventually.
  • Daily chart is poised to breakout so at least on the daily time-frame I'd treat it as a 'speculative buy.' EMA's are also looking to crossover.

Coffee: JO
  • JO is listed as a speculative buy on the daily charts.
  • MFI showed an excellent entry right at the New Year coincident with an end to a slow stochastics cycle. Since then it's held nicely at $29.90.
  • The weekly charts leave a lot to be desired - it's currently in the middle of nowhere which is leaving me a little puzzled. Ideas?

Commodities: DBC
  • DBC is listed as a speculative buy.
  • The EMA's are poised to crossover on the daily chart.
  • This upward move is supported by the MACD and KST indicators. Let's monitor how solid this floor is at $17.00. The weekly chart is showing a nice break up from our steep downward channel.

Copper: JJC
  • JJC listed as speculative buy on the daily charts.
  • A bounce on the weekly charts of the lowermost channel line was called and has now occurred. You could continue take advantage of this, but please be careful. It is in a downward channel that hasn't changed since 2011.  

Corn: CORN
  • CORN is listed as a buy on the daily charts.
  • I'm still seeing a strong turnaround unfolding on the weekly charts, too. Please put CORN on your watch-list.

Cotton: BAL
  • Listed as a neutral.
  • The close proximity of all the MA's and EMA's is a good reason to be watching BAL.
  • On the daily charts we are coming up on a critical resistance level. I want to see how this plays out before making a call. The EMA's are spread out so they'll need to converge first before breaking out of the large red channel.

Crude Oil: USO
  • A speculative buy signal is being issued.
  • Our current bounce is quite evident on the weekly charts but I expect resistance at $22.00. 

Gold: GLD 
  • Gold is now a speculative short on the daily charts. The 'pause' that I have called for in GLD is still happening. The EMA(34) is trailing quite far behind it's current price and I would like to see it catch up before moving on. It is now above the MA(144) which is a huge development. 
  • According to my weekly charts we are closing in on my projected support of $116.00. This is going to be a phenomenal buy area.

Lithium: LIT
  • Lithium is still listed as a buy on the daily charts. EMA(4), (9) and (13) are all about to cross the EMA(34).
  • Resistance at around $12.00.

Livestock: COW
  • COW is still listed as a short on the daily charts and quite precariously positioned on the last resistance level.
  • On the weekly charts we are still not at $25.50. 

Natural Gas: UNG
  • Natural gas is listed as a neutral.
  • Daily charts show a breakout though so on this time-frame it's a 'speculative buy.' Resistance placed at $17.00.

Palladium: PALL
  • Palladium is listed as a neutral. I have reversed my position based on the general strength of commodities generally. This might breakout but please have tight stops and watch for resistance at around $77.50. The chart here looks suspiciously similar to timber (CUT) which jumped higher.
  • EMA(9) is imminently about to cross over the EMA(13) on the daily chart. Both are closing in on the MA(144) and although it may reach the MA(144) I don't believe it will cross.
  • The weekly chart shows that there is still a little distance to go.

Platinum: PPLT
  • Platinum is still listed as a buy
  • Accumulation between $114.00 and $125.00 should be made at any and all opportunities.  
  • The weekly chart showed my upper resistance level at $125.00 nicely. 
  • Daily charts have shown the breakout from the long-term downtrend and EMA's are turning up. PPLT is looking really good!

Silver: SLV
  • Silver is a buy. The gap up on Friday has really changed the picture of the daily charts. The EMA's are crossing over.
  • I like the long term outlook for silver. Please wait for a buy signal in the coming week or two.  

Soy Bean: SOYB
  • Soy has been changed to a neutral.
  • Large declining channel has now been illustrated for your convenience.

Steel: SLX 
  • Steel is still listed as speculative buy.
  • The daily charts are looking really good. EMA's have crossed over and upper resistance is estimated at around $40.25.

Sugar: SGG
  • Sugar is listed as a buy on the daily charts.

Timber: CUT 
  • Cut is listed as a buy. Catastrophically bad call on timber. My apologies. Every six weeks or so I make one. This has bounced along with a general strength in commodities being seen.

Uranium: URA
  • Uranium is a speculative buy to about $11.40.

Wheat: WEAT
  • Retracement towards $10.60 was foreseen and has taken place like clock-work. 
  • Wheat is a speculative buy on the daily chart. 
  • A bounce off of $10.65 is expected. 

Jakob Richardson © 2015