Tuesday’s Futures Setups
March wheat futures
(
WH2 |
Quote |
Chart |
News |
PowerRating) tumbled Friday on the Chicago Board of Trade, accompanied by a bland outlook for U.S.
exports.
After trading slowly all week, wheat prices tumbled. An early lack of buying
enthusiasm pushed prices beneath a key technical barrier, and that triggered
broader selling. March
wheat had been putting in a Triple Bottom, but today wheat clearly broke down
and closed below its support level.
On the New York Mercantile Exchange, Crude oil for March [CLH2|CLH2]
delivery rose .27 cents to close at 21.50, with stronger trade volume. Crude has
a resistance level at 21.70.
April gold
(
GCJ2 |
Quote |
Chart |
News |
PowerRating) closed just below its support level of $300 an ounce. April Gold
closed at 298.900 down 1.30.
April gold is on the
TradingMarkets.com Momentum 5 List. Again, watch for weakness in gold. Gold has a
tendency to pull back after a large fast movement.
March silver
(
SIH2 |
Quote |
Chart |
News |
PowerRating) closed higher
today at 453.800, up .80. March silver is on the
New 10 Day Highs List.
March cocoa
(
CCH2 |
Quote |
Chart |
News |
PowerRating) is rallying from a
pullback from
its high. Today cocoa for March delivery rose immediately and stayed near
the top of its range for most of the day and closed just below the highs of the
day at 1481.000, up 31.000. Prices have been
soaring amid worries about quality in top producers West Africa and Brazil.
Cocoa is on the
TradingMarkets.com Momentum 5 List
March
coffee [KCH2|KCH2] is rallying from a short-term bottom, closing at
44.10 up .35. March coffee is on the
TradingMarkets.com Implosion 5 List
March pork bellies
(
PBH2 |
Quote |
Chart |
News |
PowerRating)
continues to trade right around the 50% retracement line. Today bellies dropped
.130 to 74.30. Bellies have overhead
resistance at 77.
Stuck in a bear market for much of this year, March
corn
(
CH2 |
Quote |
Chart |
News |
PowerRating) had been setting up a Potential False Rally. It did just
that and with yesterday’s and today’s big moves to the downside, March corn is
close to retracing back to its 204.00 support level. This morning corn for March
delivery tried to move above yesterday’s close and then drifted to the lows of
the day and stayed there for the majority of the session. Corn closed at 205.000,
down by 1.75. March corn is on the
Pull Backs off Lows List.
March natural gas
(
NGH2 |
Quote |
Chart |
News |
PowerRating) has been
on the Nightly Futures Report as a
Potential False Rally and the trigger was a
break below 2.20. Today natural gas moved up higher to close at 2.206 up
.020.
March Swiss franc
(
SFH2 |
Quote |
Chart |
News |
PowerRating) has been
on the Nightly Futures Report as a Potential False Rally and the trigger was a
break below
59.00. The 59.00 point was broken on 02-1-02
and today the franc closed lower at 58.84 down .060.
|
Contract
|
Setup
|
Direction
|
Trigger
|
| March U.S. dollar ( DXH2 | Quote | Chart | News | PowerRating) |
Pull Back From Highs |
UP |
break above 121.00 |
March Cotton ( CTH2 | Quote | Chart | News | PowerRating) |
Channel |
UP
|
break above 38 |
| March 30 YR Treasury ( USH2 | Quote | Chart | News | PowerRating) |
Inverted Head and Shoulders | UP |
break above 104 |
| March 10 YR Treasury ( TYH2 | Quote | Chart | News | PowerRating) |
Inverted Head and Shoulders | UP |
break above 107 |
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 a day or two. Trading with the main
trend is always the highest-probability trade.
Use stops on all your
trades.