Tuesday, March 17, 2015

Commodities Report: Daily Charts

Today will be an examination of commodities that are making moves and/or changing directions that I think people should be cognizant of.

Coffee: JO
  • JO is a buy/long on the daily charts. 
  • I speculated that support looked good at $22.50 in my last post and so far it's holding up. My long term MACD indicator has crossed up so I don't think I can pass this up.

Commodities: DBC
  • DBC is still listed as a short/sell.
  • I should comment on this given the importance of DBC as a general indicator of economic health. 
  • In my last post I said that support at around $16.60 wouldn't hold and today we witnessed a breakdown. The frightening thing is that there is a lot of room for it to continue falling. Because of the low put in back in January the declining channel has widened. 

Copper: JJC
  • JJC listed as a short/sell on the daily charts. 
  • I listed this as a "speculative buy" if it could break above $31.75 and so far it hasn't. The "short/sell" arrow I put up back in March was the correct call. 
  • EMA's have crossed downwards.

Crude Oil: USO
  • A sell/short signal is now issued.
  • I hope you have all profited from my advice of shorting oil. Zerohedge ("The USO carnage has just begun") has reported a "sharp" increase in the number of outstanding USO shares in addition to a spike in the oil price contango. 
  • Support broke $16.50 and the curves on my KST indicator look like they are going to pick up pace.

Natural Gas: UNG
  • Natural gas is listed as a long/buy. 
  • I was wrong about natural gas following crude oil. 
  • My diagonal resistance line was broken this morning and UNG has powered up 3.82% at the time of writing. 

Steel: SLX 
  • Steel is still listed as a speculative long/buy.
  • Support at $31.00 is holding so upward resistance is put at around $34.50

Timber: CUT 
  • CUT is still listed as a long term buy
  • Timber is retracing some heavily over-bought conditions and is now sitting just above $24.60. Things will be interesting when they reach the lower blue support line. 
  • Over the next week CUT will be watched very closely.

Jakob Richardson © 2015