Tuesday’s Futures Setups
Treasury prices gained ground while the U.S.
dollar weakened today.
This morning the March U.S. 30 Year Treasury
Bonds
(
USH2 |
Quote |
Chart |
News |
PowerRating) broke out above their resistance level of 103.813. This
came on the heels after closing higher on Friday 02-01-02. The stochastics are
positioned to turn bullish with additional strength from the bonds. The overhead
resistance is the December high of 105/106 area. The March bond closed at
104.156, up .810. The March 10 year treasury closed higher at 106.891 up .640.
March cocoa
(
CCH2 |
Quote |
Chart |
News |
PowerRating) broke out above its 50% retracement line at 1350.
It closed right at its resistance of 1400. A break above 1400 will boost cocoa
to contract highs. The support for cocoa is currently at 1270.
March cotton
(
CTH2 |
Quote |
Chart |
News |
PowerRating) broke up higher
and closed at 37.83 near its high with strong volume. Watch for a potential breakout above
the 38 resistance level.
Last week March Silver
(
SIH2 |
Quote |
Chart |
News |
PowerRating) fell
down below it’s support level (424.00) to close down to 422.30. This was a key
support area for the March contract. Last Friday it rallied back higher to close above its resistance of 4.30.
Today silver had a very narrow trading day but ended on a positive note at
4.035. The resistance is at 4.35.
April Gold
(
GCJ2 |
Quote |
Chart |
News |
PowerRating) is breaking out of
a cup and handle pattern with stronger volume. Overhead resistance is 295 and
support is at 288.00.
Last week we were showing March soybeans
(
SH2 |
Quote |
Chart |
News |
PowerRating) as a potential set up; a pull back from highs. A break above 432.098
would signal a potential move higher. today the beans broke above their
resistance to close at 434.00. March soybeans now have over head resistance at
448.00.
|
Contract
|
Setup
|
Direction
|
Trigger
|
| March U.S. dollar ( DXH2 | Quote | Chart | News | PowerRating) |
Pullback From Highs |
UP
|
break above 121.00 |
March Soybean meal ( SMH2 | Quote | Chart | News | PowerRating) |
Pullback From Highs |
UP
|
break above 150.44 |
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.