Sunday, February 28, 2016

Week in Review: Agriclture (DBA), Coal (KOL), Coffee (JO), Commodities (DBC), Corn (CORN), Crude (USO), Livestock (COW), Natural Gas (UNG), Platinum (PPLT) and Steel (SLX)

After the success of yesterday's Week in Review for the general market index ETF's I decided to post some interesting daily charts from the commodities market. Curiously, while bearish ascending wedges seem to be going in for the market ETF's, most the commodities ETF's are putting in bullish declining wedges.

Agriculture: DBA
As noted earlier in the week a very large bullish declining wedge has developed. The breakout so far seems a little tepid so let's watch this closely, but a breakout is a breakout.
Coal: KOL
No wedges here but we do have to respect the trend which is a narrow ascending channel. EMA's have also bullishly crossed over so I say "run with it."
Coffee: JO
We've been running on decalf since about July last year while a bullish declining wedge developed. It continues to pinch so a breakout feels imminent
Commodities: DBC
The commodities ETF seems to be doing something a little different than everyone else with it occupying a strong downward channel. It appears possible that a breakout of one bullish declining wedge occurred recently with DBC now in a triangle that's able to break either way.
Corn: CORN
CORN is also in a large bullish declining wedge holding at support at $20.75.
Crude: USO
This kind of went under the radar for me but crude had a weak breakout Friday! Nigerian Oil Minister said on CNBC that OPEC will agree to a production freeze with the price range around $50.
Livestock: COW
Livestock ETF COW seems to be bucking the trend with a bearish ascending wedge going in
Natural Gas: UNG
I am heavily invested in this one and I've been losing money all week, so I'm hoping I'm still correct with my call of a bullish declining wedge.
Platinum: PPLT
Platinum seems to have put in a bearish declining wedge and just broke down (along with many of the other precious metals).
Steel: SLX
Steel ETF SLX also seems to have put in a bearish declining wedge after having recently broken out from a long-term downtrend. There's a lot of room for further ascent, however, so the time for a fall is not immediate.