If You’re Long Crude, Look At This Setup
The Fed held steady, we got a new SEC chief, and
the indices rally.Â
Bonds
(
USZ2 |
Quote |
Chart |
News |
PowerRating) are approaching the top of a large triangle after a false
breakdown on December 2.
Long
Candidates:
|
Contract |
Setup |
Direction |
Trigger |
| Sugar ( SBH3 | Quote | Chart | News | PowerRating) |
Pullback From High |
up | above Tuesday’s high |
| Cotton ( CTH3 | Quote | Chart | News | PowerRating) |
Continuation | up | above Tuesday’s high |
March Cotton
(
CTH3 |
Quote |
Chart |
News |
PowerRating) had a big day, up almost 4%, and we may have
some continuation Wednesday.
March Sugar
(
SBH3 |
Quote |
Chart |
News |
PowerRating) looks like it wants to rally from a pullback
here.
The Euro
(
ECZ2 |
Quote |
Chart |
News |
PowerRating) is at a crucial spot: at the top of a channel,
hitting a high for the fourth time. A break above would be bullish.
December Gold (GCZ2)
pulled back from 9/24 and 7/19 resistance, and is giving the appearance of a
triple top.
Short
Candidates:
| Contract |
Setup |
Direction |
Trigger |
| Wheat ( WH3 | Quote | Chart | News | PowerRating) |
Breakdown from bearish flag |
down | above Tuesday’s high |
| Gold ( GCG3 | Quote | Chart | News | PowerRating) |
Triple Top |
down | below Tuesday’s low |
| January Crude ( CLF3 | Quote | Chart | News | PowerRating) |
Turtle Soup + 1 | down | triggered below Monday’s high |
|
Natural Gas |
Turtle |
down | triggered below Monday’s high |
Both January Crude
(
CLF3 |
Quote |
Chart |
News |
PowerRating)
and January Natural Gas
(
NGF3 |
Quote |
Chart |
News |
PowerRating) have triggered Turtle
Soup Plus One setups.
Don’t forget, OPEC is meeting later this week.Â
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.
Remember,
use stops on all your trades.