Tuesday, March 24, 2015

Commodities Report: Daily Charts

I still don't have my results from my first medical board exam, the PLAB 1, but this has not stopped me from returning to London for a course in preparation for the second step of my licensing, the PLAB 2, and I will therefore not be making many posts for the next twelve days.

Tonight is an abridged view of commodities that are making moves or changing directions that I think investors should be aware of. My long/buy signal on precious metals (GLD, SLV, PPLT, PALL) has held up nicely with solid returns so far. I have since reversed my position on platinum (PPLT) and palladium (PALL), however. My long/buy signal on natural gas (UNG) has not yet materialized. I unfortunately closed out my position at a loss and am regretting it now as it has since retraced. It's best to remain neutral while this consolidation pattern resolves itself.

Coal: KOL
  • Daily chart shows KOL as a neutral
  • Still have a bearish configuration on the EMA's.
  • My long term KST and PMO indicators do not look like crossing upwards, but rather are plateauing for another journey downwards.
  • A break above $13.60 has not happened and it seems to be struggling to do so.

Coffee: JO
  • JO has been changed to a neutral
  • Support still looks good at $22.50 but the EMA's are still very bearishly aligned.

Commodities: DBC
  • DBC is listed as a neutral.
  • Support at $16.75 has continued to hold and a breakout from the long-term descending channel appears imminent. 
  • I'm still waiting to see what happens. After today it looks as if commodities will kiss the last resistance line and then plummet downwards, a very real and very worrying scenario. The channel of DBC is shallow enough that it can do that and any move downwards for commodities is likely going to be led by crude oil, a major component of DBC. Crude oil, as the USO chart will show you, is not looking hot at the moment and my sell/short signal for it still stands.

Corn: CORN
  • CORN has been switched to a neutral.
  • We're so close to the uppermost resistance line with a great day on Friday and again today with the EMA's pinching closer (although still bearishly aligned).
  • Please notice that CORN is poised to move above the last resistance line.

Gold: GLD 
  • Gold is a long/buy on the daily charts.
  • Could the massive new upward channel I've drawn in be the inflection point gold bulls have been waiting for? It's easy to see how it could all be the same "motif."
  • The call eight sessions ago was a good one and precious metal markets have been reaping the benefit after the Fed's statement.
  • My long term indicators (such as the KST and PMO) have just crossed over. 

Palladium: PALL
  • Palldium is a speculative short/sell and has begun to diverge rather precariously from the other precious metals, silver and gold most notably. 
  • Long-term indicators do not appear happy.

Platinum: PPLT
  • My position on PPLT has been changed to a speculative short/sell based on the widening pattern I have discovered and the declining series of lower-highs.
  • I want to see a break above the red resistance line first.

Jakob Richardson © 2015