Wednesday’s Futures Setups
Profit-takers stepped into today’s oil and
gas futures trading. Crude oil futures
(
CLH2 |
Quote |
Chart |
News |
PowerRating) lost 3.18% in
today’s trading session after posting a late-day rally yesterday. The contract opened lower, then rallied to an intraday high at
21.50, closing at 20.73, down .68. Prices are likely to fall further when the
American Petroleum Institute releases its weekly data, which are expected to
show a moderate seasonal buildup in crude oil stocks. March
heating oil
(
HOH2 |
Quote |
Chart |
News |
PowerRating) lost 1.59 to end at 54.60, and March unleaded
gasoline dropped 1.81 to 60.19.
March cocoa
(
CCH2 |
Quote |
Chart |
News |
PowerRating) is pulling back from
its high. Today, the contract gave back some of its gains to
close at 1476, down 3.00. Prices have been
soaring amid worries about quality in top producers West Africa and Brazil.
March cocoa is on the
TradingMarkets.com New Ten Day High List.
April gold
(
GCJ2 |
Quote |
Chart |
News |
PowerRating) closed just above its support level of $300.00 an ounce,
finishing at 301.30, up .50.
April gold is on the
TradingMarkets.com Momentum 5 List. Watch for weakness in gold. Gold
has a tendency to pull back after a large fast move. Another
reason for a possible pullback is that the holidays across Asia will limit
liquidity in the markets.
April live cattle
(
LCJ2 |
Quote |
Chart |
News |
PowerRating) is pulling
back from its highs. Today, live cattle for April delivery closed at 73.25, down
.05. The live cattle contract is on the
TradingMarkets.com Momentum 5 List.
March pork bellies
(
PBH2 |
Quote |
Chart |
News |
PowerRating)
continues to trade right around the 50% retracement line, closing at 75.25, up .15. Bellies have overhead
resistance at 77.
March corn
(
CH2 |
Quote |
Chart |
News |
PowerRating) rallied .50 to
205.75 a bushel and is setting up a potential false rally.
March coffee
(
KCH2 |
Quote |
Chart |
News |
PowerRating) faded to a new
contract low today, closing at 43.00, down .10. From the looks of the chart, coffee
looks very bearish. March coffee is on the
Volatility Explosions – Low Multiple Days Readings list.
|
Contract
|
Setup
|
Direction
|
Trigger
|
| March U.S. dollar ( DXH2 | Quote | Chart | News | PowerRating) |
Pullback From Highs |
UP |
break above 121.00 |
March Cotton ( CTH2 | Quote | Chart | News | PowerRating) |
|
|
break above 38 |
| March Wheat ( WH2 | Quote | Chart | News | PowerRating) |
Triple Bottom | UP |
break above 299 |
| March Swiss franc ( SFH2 | Quote | Chart | News | PowerRating) |
Potential False Rally | DOWN |
break below 5900 |
| March Natural Gas ( NGH2 | Quote | Chart | News | PowerRating) |
Potential False Rally | DOWN |
break below 2.20 |
| 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 —
it may
be only for a day or two. Trading with the main
trend is always the highest probability trade.
Please use stops on all your
trades.