Thursday, March 19, 2015

Commodities Report: Daily Charts

Update of the significant commodities making moves after yesterday's good-cop/bad-cop routine from the FOMC.

Coffee: JO
  • JO remains a long/buy on the daily charts. 
  • We are approaching upper resistance but coffee is looking decent in the medium-term.

Commodities: DBC
  • DBC is listed as a neutral.
  • A lot people have been hammering commodities after today's open but thinking about the daily charts and looking closely at the MACD(13,34,0) indicator I think a double bottom has been put in. This will be monitored closely but a breakout seems imminent.

Cotton: BAL
  • Listed as a speculative buy/long
  • The turnaround that I was sensing in cotton has materialized. Not only is a strong advance being seen after yesterday's rise but a breakout of the long-term downtrend has happened (again).

Crude Oil: USO
  • A sell/short signal is still issued.
  • Yesterday was a real roller-coaster! I maintain my short positions on crude, especially after some disheartening comments by the Kuwaiti oil minister.

Gold: GLD 
  • Gold is still a speculative buy on the daily charts.
  • I maintain my long-term view that gold could still decline to $1000.

Livestock: COW
  • COW is listed as a long/buy on the daily charts and still quite precariously positioned near the last resistance level.
  • Momentum has begun to develop beneath COW and I have issued a short term 'buy' on it.

Natural Gas: UNG
  • Natural gas is listed as a long/buy. 
  • Like crude oil UNG also went on a roller-coaster yesterday. A convincing breakout was witnessed yesterday followed today by a near complete retracement today (a getting worse as the day goes on). The close might happen below our breakout line, however the reason I am recommending UNG as a long/buy is because of the massive amount of divergence that has developed on the MACD stretching over four months. 
  • We are still in the major buying season for natural gas which lasts until June, approximately.  

Timber: CUT 
  • CUT is listed as a long term buy
  • I called for some retracement of CUT after it's meteoric rise but I am seeing signs again that it is ready to move upwards again. Short term CUT is a speculative buy

Jakob Richardson © 2015