Wednesday’s Futures Setups
Arabica coffee futures on the Coffee, Sugar &
Cocoa exchange took off today, continuing a bullish move upward out of the six-month range and
settling at a 28-week high. Yesterday we pointed out that the initial
resistance on coffee was 53.48. A push above 54.50 would be a bullish development.
Today the May coffee contract
(
KCK2 |
Quote |
Chart |
News |
PowerRating) opened lower and pulled back to
around 53.29, than began a strong rally to close near the highs at 56.75 up 2.60
or 4.80%. 8.63%.
This is a bullish development and is one clue that the long slide in coffee
futures may be nearing an end, or has ended. Resistance is now around 57.83 and
support is at 54.22. It will be very important for coffee to hang on to the
gains they have scored this week. The recent increase in volatility at lower
price levels was also a positive portent for the bulls. The next few trading
sessions will be particularly important for the longer-term health of the coffee
futures market.
May coffee is on the
TradingMarkets.com Momentum 5 List.Â
Crude oil and refined products futures on the
New York Mercantile Exchange traded mixed today. Today’s trading comes ahead
of the weekly inventory data that is expected to show supportive draws in the
nation’s inventories.
After rising sharply for two weeks on a quickly
improving U.S. economy, the oil complex opened sharply lower Tuesday as traders
scrambled to take profits. April crude oil
(
CLJ2 |
Quote |
Chart |
News |
PowerRating) dropped .11 to end
at 24.20 a barrel. April unleaded gasoline
(
HUJ2 |
Quote |
Chart |
News |
PowerRating) fell .56Â to
78.54. Ending positive on the day were April heating oil
(
HOJ2 |
Quote |
Chart |
News |
PowerRating) up
.04 to 63.49 and April natural gas
(
NGJ2 |
Quote |
Chart |
News |
PowerRating) was up .01 to 3.03. 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 rallied to another high today. May cocoa
(
CCK2 |
Quote |
Chart |
News |
PowerRating) closed
at 1552.000 up 2.000% or .13%. 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 |
| 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 280 |
| 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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