Sunday, May 17, 2015

Commodities Report: Daily Charts (DBA, KOL, JO, DBC, JJC, USO, GLD, LIT, UNG, SLV)

Still in London studying (sort of) so here is a weekend update of commodities. I am sensing headwinds building up in the market which is still caught in an ascending bearish triangle with bull's failing to break above 2125 on the S&P and small cap stocks getting brutalized. Bearish ETF's, particularly in energy, should be evaluated carefully in the coming week to take advantage. Commodities are looking rather good overall at the moment and I feel this reflects general weakness in the U.S. dollar.

Agriculture: DBA
  • DBA is listed as a speculative long/buy.
  • The momentum that I have been commenting on for a few months now continues to build. 
  • A good support area at $22.00 seems to be in place. 
  • Medium term KST is poised to crossover in the coming weeks.

Coal: KOL
  •  KOL is listed as a speculative long/buy.
  • The consolidation triangle I mentioned long ago is playing out, but a bullish crossover on the EMA's has occurred.
  • Momentum continues to move towards the 'zero' line.
  • PMO imminently about to crossover.

Coffee: JO
  • JO is listed as neutral.
  • JO is still caught in a large long-term downtrend but continues to move laterally towards the last resistance line.
  • Environmental reports continue to hint at an early dry season with adverse effects on next year's coffee crop.
  • Momentum is strongly moving towards the positive region.

Commodities: DBC
  • DBC is listed as a neutral.
  • I called a speculative short/sell when it came into contact with resistance around $18.30 about a week back and it has since contacted the furthest channel resistance line but seems poised to power on. 
  • I remain cautiously optimistic on DBC.

Copper: JJC
  • JJC is listed as speculative short/sell.
  • Still in a bearish pennant but the stock seems to be pivoting at the moment. 

Crude Oil: USO
  • USO is listed as a strong short/sell.
  • Price target is around $18.50

Gold: GLD
  • GLD is listed as a long/buy.
  • My target is around $120 however 'point and figure' charts are saying $125 which is a little confusing.

Lithium: LIT
  • LIT is still listed as a long/buy however there is a short term correction possible (near term speculative short/sell).
  • My call on LIT several weeks ago was superb but after the long run a bit of a break is necessary.
  • Please take profits.

Natural Gas: UNG
  • UNG is listed as a speculative short/sell.
  • Too fast too furious - UNG needs a break and is currently overbought. I have no idea what the channel pattern actually looks like but I've taken a stab at it.

Silver: SLV
  • Silver is also listed as a speculative short/sell.
  • The ascent here has also been a little 'crazy' and a break is in order. Upper limit in the medium term is still around $17.10 to $17.30.

Jakob Richardson © 2015