Key Reversal in Natural Gas; Crop Production Report Due for Grains Today
Comments for Friday, April 9, 2010
Looking Ahead to Today by Reflecting Back at Thursday’s Price Action
ENERGIES:
Lower closes Thursday for crude and heating oil along with the rbob and natural gas again. Except for gas all of the energies are still in uptrends and rallied nicely off their lows to settle in the upper half to quarter of their respective trading ranges acting like normal bull markets do. Gas made a KEY REVERSAL on April 1st but, after following through higher on Monday, has been drifting lower approaching contract lows. This still could be the beginning of a bottom but that remains to be seen. BUY SIGNALS FOR CRUDE, HEAT AND THE RBOB. CALL FOR DETAILS!
GRAINS:
CROP PRODUCTION. USDA SUPPLY/DEMAND. Slightly higher closes yesterday for rice, unchanged for oats but lower for corn, Minneapolis, Kansas City and Chicago wheat along with soybeans, soymeal and soyoil. All of the wheat closed lower continuing their overall downtrends with resistance over 490 for KC and Chicago while around 510 for Minneapolis basis the May contract. Oats settled unchanged also still in a downtrend but has held a DOUBLE BOTTOM at contract lows so far while consolidating over the last couple of weeks. Rice closed slightly higher now in a small BULL PENNANT continuing to look higher at this time with resistance 5 cents higher in the May contract. The bean complex closed lower this time but no changes technically. The beans and meal continuing to be neutral for me with the beans in a 925-975 trading range since the beginning of February. Oil is still in a resistance area while meal continues to look lower but is attempting to form a large bottom. However, that potential formation has been slowly fading away.
Read the balance of my morning comments, including the Metals, Softs, Energies and Grains, at my website. For my complete coverage, visit my commentary page at www.markethead.com.
Rick Alexander has been a broker and analyst in the futures business for over thirty years. He is a Vice-President for Sales and Trading at the Zaner Group (www.zaner.com) a Chicago-based futures brokerage firm. If you would like a free booklet explaining the charts mentioned above, email Rick at ralexander@zaner.com.
The information in this Report and the opinions expressed are subject to change without notice. Neither the information nor any opinion expressed constitutes a solicitation by Rick Alexander or the Zaner Group of the purchase or sale of any futures or options. Futures and options trading is speculative in nature and involves risks. Spread trading is not necessarily less risky than outright positions. Futures and options trading is not suitable for all investors.
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