The Bigger They Are
The bigger the gains, the harder the fall. Natural gas has
been logging spectacular gains, rallying nearly 50% in a week on forecasts for
cold weather. But even as the Midwest shovels away the snow, meteorologists’
forecasts for warming weather in coming days is sending natural gas futures for
their biggest declines in many years, down as much as 13%. This leaves the
January contract
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PowerRating) (and others) with
shooting star candlestick formations, patterns associated with exhaustion. Nat
gas is currently trading lower in expanded limits, down 1.163 at 8.250.
January soybeans
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PowerRating)Â has
already scored an outside day and appears poised to breakout of the handle of
its cup-with-handle formation. Both beans and soymeal
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PowerRating), a Pullback From
High contract, have a strong fundamental stories underpinning a potential move
higher–the European mad cow scare and soymeal as an animal feed protein
substitute. Soybean meal has rallied for the past three days, making good on its
pullback setup. Beans’ price persistency, two days of closes in the upper
quartile of its range, and move back to the top of the handle today, point to a
potential pop in these two contracts.Â
Cocoa
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PowerRating) has registered a new contract low. The previous low was made on Nov. 27, setting
this contract up in a Turtle Soup pattern. Turtle Soups are reversals signals
triggered on the same day day rather than on the following day as in the Turtle
Soup Plus One patterns that our Futures Indicators page issues signals for. The
setup is similar in that the buy trigger is at the previous 20-day low at 713,
with the stop going at the low of today’s session at 707, a tight setup.Â
Orange
juice
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PowerRating) is set up in a slightly complex Pullback From Highs
setup with the pullback bars tracing an ascending triangle. In this formation,
the 89.00 level is acting as resistance and the trigger for a move back to test
the 80.22 Dec. 4 high.