Monday’s Futures Setups

February Gold
(
GCG3 |
Quote |
Chart |
News |
PowerRating) hit a 1.618 extension and is also
at an AB=CD level, so we may have a reaction pullback day Monday. But,
it popped out of a long-term triangle so the longer-term trend looks
up.

March Cocoa
(
CCH3 |
Quote |
Chart |
News |
PowerRating) looks ready to continue its
rally from a pullback.

Short
Candidates:

Bonds
(
USH3 |
Quote |
Chart |
News |
PowerRating)
and
(
TYH3 |
Quote |
Chart |
News |
PowerRating) look like they may have reversed Friday. Look for
lower prices Monday.

March Coffee
(
KCH3 |
Quote |
Chart |
News |
PowerRating)
looks pretty oversold, but keep in mind any trade here is like trying
to catch a falling knife. It’s trading right above its 200-day moving
average.

Please
note that while there are strong trends, one bar or a series of bars
forming a setup can sometimes indicate a contra move for the next day.
This contra move may not be long-lasting — maybe only for a day or
two. Trading with the main trend is always the highest probability
trade.