Today will be an examination of commodities that are making moves and/or changing directions that I think people should be cognizant of.
- 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.
- 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.
- 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 is still listed as a speculative long/buy.
- Support at $31.00 is holding so upward resistance is put at around $34.50
- 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