Wednesday, April 15, 2015

Commodities Report: Daily Charts

Aluminum: JJU
  • JJU is still listed as a short/sell
  • Great day today for JJU which saw a rise of 6.77%.
  • EMA(9) and EMA(13) are converging on the EMA(34). I want to see a solid break above it before I become cautiously optimistic. 

Coffee: JO
  • JO is now a speculative long/buy
  • I recently saw a report that the dry season in Brazil (one of the world's foremost coffee growing regions) started early this year. We are seeing a weak ascending triangle with higher lows and an imminent break out of it's long term declining channel.

Commodities: DBC
  • DBC is listed as a long/buy.
  • Given everything that is happening in the world I'm fairly pessimistic of commodities, but I can't fault it's recent emergence from it's declining channel.
  • EMA's are all about to cross upwards although still below the MA(144).
  • Both medium and near-term KST indicators crossed over at the same time. 
  • Resistance is in at around $18.25.

Crude Oil: USO
  • A long/buy signal is now issued.
  • Both short and medium term KST indicators have crossed over bullishly.  
  • I opened a position last night and was happy to sell when it was up 3% this afternoon only to have it continue up to 6%!
  • Resistance is in at around $20.00 at which point a retracement will take place.
  • Please continue to watch USO skeptically.

Gold: GLD 
  • GLD is a speculative short/sell on the daily charts.
  • EMA's are all aligned to crossover the MA(144) which is good but I have detected a diagonal resistance line at around $115.00 which has been made by a series of lower highs.
  • I am also theorizing the emergence of a massive head and shoulders pattern.
  • Failure to cross this diagonal resistance will lead to a strong short/sell call.

Lithium: LIT
  • Lithium is listed as a long/buy on the daily charts. 
  • My premature long/buy call back in March has paid off when today it broke above $12.10.
  • EMA's have all crossed above the MA(144) but are a little spread out so I'd expect some consolidation in the coming days.

Natural Gas: UNG
  • Natural gas is listed as a speculative short/sell.
  • UNG had a great day as well today but I'm still looking at it pessimistically. I've drawn in a diagonal resistance line which connects the series of lower highs that we've had over the last four months. 
  • Today it did not break above my $13.10 horizontal resistance line, nor should it if it continues downwards. 
  • The next two or three sessions are critical for determining UNG's direction as the large declining channel is quickly running out of lateral space!

Steel: SLX 
  • Steel is still listed as long/buy.
  • SLX broke out of it's long term declining channel and crossovers have been seen in both the short and long term KST's. 
  • EMA's are charging upwards but still appear below the MA(144)
  • A diagonal resistance line at around $33.80 has been placed.

Jakob Richardson © 2015