Thursday’s Futures Setups
The April Commodity
Research Bureau
(
CRJ2 |
Quote |
Chart |
News |
PowerRating) Index is a composite index of close to two-dozen
major raw commodities prices. The index includes the price of grains,
energies, livestock and other commodities that have futures markets. Many
traders closely monitor the CRB Index for clues on the overall performance of
commodities prices, and to gauge inflation. A look at the weekly CRB chart shows
a downtrend line that has recently been soundly negated. A fresh uptrend line on
the weekly chart has begun. The CRB Index has liked to trend strongly since it
came into existence in the mid-1980s. The fact that prices have recently
rebounded off of strong support just above the 180 level also gives a positive
bias for the markets.
Arabica coffee futures on the Coffee, Sugar &
Cocoa exchange gave back some of their gains today. Coffee for May
(
KCK2 |
Quote |
Chart |
News |
PowerRating)
pulled back and touched its support at 54.23 before closing at 55.50 down 1.25.
Over head
resistance on coffee is around 60.00.
May coffee is on the
TradingMarkets.com Momentum 5 List.Â
Investors, looking at a mixed weekly supply
data report were interested in energies, which caused oil prices to rise by a
small amount. Then crude declined and closed negative. April crude oil
(
CLJ2 |
Quote |
Chart |
News |
PowerRating) closed at 24.160 down .04, despite indications that the
Organization of Petroleum Exporting Countries will extend production cutbacks
and while tension between the U.S. and Iraq intensifies.
Today the American Petroleum Institute, which represents more than 400 energy
corporations, released its weekly report showing a 6.56-million-barrel draw
(decline in inventory). But that data, based solely on the members of API, were
far greater than those released by the Department of Energy, which showed
crude-oil stocks down 2.8 million barrels– causing investors to lose support
for significantly higher prices.
Meanwhile, OPEC is expected to leave its output unchanged at its meeting in
Vienna on Friday. OPEC production is at its lowest since 1992 as its members
have reduced their scheduled output by five million barrels a day since the
start of 2001, although actual production has declined by just over four million
barrels a day.
On the New York Mercantile Exchange, April
natural gas
(
NGJ2 |
Quote |
Chart |
News |
PowerRating) fell off 0.17 cents to $2.85 per 1000 cubic feet,
April heating oil
(
HOJ2 |
Quote |
Chart |
News |
PowerRating) gained 1.33 cent to 64.82 cents a gallon,
while April unleaded gasoline
(
HUJ2 |
Quote |
Chart |
News |
PowerRating) rose 0.66 cents to 79.20 cents
a gallon. April
crude oil, April heating oil, April unleaded gasoline and April natural gas are all on the
TradingMarkets.com Momentum 5 List.Â
May soybeans
(
SK2 |
Quote |
Chart |
News |
PowerRating) broke above its inverted head and shoulders
neckline on 03-07-2002. It remains above its support line of 457.50.
May cocoa
(
CCK2 |
Quote |
Chart |
News |
PowerRating) closed
at 1552.000 unchanged. May cocoa is on the
TradingMarkets.con New 10 day Highs list.
|
Contract
|
Setup
|
Direction
|
Trigger
|
| June U.S. dollar ( DXM2 | Quote | Chart | News | PowerRating) |
Pull Back From Highs | Â Â Â Â Â Â Â Â Â Â Â Â UP |
break above 118.17 |
| June Japanese Yen ( JYM2 | Quote | Chart | News | PowerRating) |
Pull Back From Highs | Â Â Â Â Â Â Â Â Â Â Â UP |
    break above .007800 |
| May cocoa ( CCK2 | Quote | Chart | News | PowerRating) |
New 10 day high | Â Â Â Â Â Â Â Â Â Â Â UP |
 |
| May corn ( CK2 | Quote | Chart | News | PowerRating) |
Pullback from lows | Â Â Â Â Â Â Â Â Â Â down |
    break below 208 |
| April copper ( HGJ2 | Quote | Chart | News | PowerRating) |
Pull Back From the High | Â Â Â Â Â Â Â Â Â Â Â Â UP | Â Â Â Â break above .7500 |
| May silver ( SIK2 | Quote | Chart | News | PowerRating) |
Pull Back From the High | Â Â Â Â Â Â Â Â Â Â Â Â UP | Â Â Â Â break above 4.60 |
| May wheat ( WK2 | Quote | Chart | News | PowerRating) |
Pullback from lows | Â Â Â Â Â Â Â Â Â down |
   break below 276 |
| May orange juice ( JOK2 | Quote | Chart | News | PowerRating) |
Pullback Off Highs | Â Â Â Â Â Â Â Â Â Â Â UP |
   break above 92 |
| April live cattle ( LCJ2 | Quote | Chart | News | PowerRating) |
Pullback from lows | Â Â Â Â Â Â Â Â Â down |
  break below 75 |
Please note that while
there are strong trends in some commodities, 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.
Use stops on all your
trades.Â
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