Friday, February 27, 2015

Commodities Report: Daily Charts

Agricultural's (DBA, WEAT, CORN and COW) are looking surprisingly strong and on the daily charts I've issued a 'buy' signal as a result. I continue to maintain my medium term forecast of weakness in the precious metals (GLD, SLV, PALL and PPLT) which will probably make the near term strength a little confusing. On the GLD chart I have tried to show where a "head and shoulders" pattern is emerging. Some commentators think it could return to $950. Additionally the bear rally in crude oil (USO) is coming to end. A renewed decline should be expected with the bottom in 2009 of $20 a barrel a distinct possibility. The corollary of this is that natural gas (UNG) will follow crude oil. Glancing at the monthly charts for UNG I noticed that the KST indicator just crossed downwards! Globally natural gas is being diversified as much as possible due to excess in places like Australia and U.S.

Agriculture: DBA
  • DBA still listed as a buy/long.

Aluminum: JJU
  • JJU is still listed as a short/sell

Coal: KOL
  • Daily chart shows KOL as a speculative buy
  • EMA's have made a bullish crossover.

Coffee: JO
  • JO has been switched to a short/sell on the daily charts.

Commodities: DBC
  • DBC is listed as a speculative long/buy.
  • Very close to the final resistance channel line.

Copper: JJC
  • JJC listed as neutral on the daily charts.

Corn: CORN
  • CORN has been switched to a long/buy.

Cotton: BAL
  • Listed as a speculative short
  • After the breakout I speculated a retracement towards the support line which sort-of-happened, except now BAL finds itself outside the Keltner channels again. An over-bought sign.

Crude Oil: USO
  • A sell/short signal is now issued.

Gold: GLD 
  • Gold is now a speculative buy on the daily charts.
  • Is a head-and-shoulders pattern emerging?

Lithium: LIT
  • Lithium is still listed as a speculative short on the daily charts.

Livestock: COW
  • COW is listed as a speculative buy on the daily charts and still quite precariously positioned near the last resistance level.
  • Some really nice divergences are still being seen on the MACD supporting an upward movement.

Natural Gas: UNG
  • Natural gas is listed as a short/sell.

Palladium: PALL
  • Palladium is listed as a neutral.
  • Support at about $78.50 and resistance at $82.00.

Platinum: PPLT
  • Platinum is still listed as a speculative buy at the moment.

Silver: SLV
  • Silver is a speculative buy.

Soy Bean: SOYB
  • Soy has been changed to a neutral.
  • We are approaching upper resistance at around $20.70.

Steel: SLX 
  • Steel is still listed as speculative short.
  • 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 being switched to a short/sell on the daily charts.

Timber: CUT 
  • CUT is listed as a long term buy
  • All the indicators are still over-stretched so my downward arrow is simply indicating the possibility of some retracement.

Uranium: URA
  • Uranium is a strong short/sell.

Wheat: WEAT
  • Wheat is a speculative buy on the daily chart. 
  • Let's see if support at $10.65 holds, otherwise this was a channel widening exercise and a further fall will occur (I've tried to show what this larger downward channel might look like).

Jakob Richardson © 2015