Wednesday’s Futures Setups
“There’s Gold in Them Thar Hills…!”
March gold hit two-year highs
today. With the stock market being uneasy of late and this week’s setback in
the strength of the dollar, April gold futures
(
GCJ2 |
Quote |
Chart |
News |
PowerRating) have rallied
sharply the past few sessions. The daily bar chart shows prices have pushed
soundly above the January highs, and are now challenging the key $300.00 level.
Today April gold crossed above stiff resistance of 290.4, which is now support.
Secondary support will be around 286.00. The psychological resistance level is
300.00. Recent history shows that big advances in the gold market are quickly
turned by big sell offs. Gold closed higher by 8.70 to 298.80. April gold is on
the
TradingMarkets.com Momentum 5 List.
March silver
(
SIH2 |
Quote |
Chart |
News |
PowerRating) rallied higher to
close right at its 50% retracement line of 4.40. A break and close above this
level could signal further movement to the upside.
March copper
(
HGH2 |
Quote |
Chart |
News |
PowerRating) is in a bullish
flag pattern. Look for a possible break above .7325.
Several of the Meats are Making Some Noise
April lean hogs
(
LHJ2 |
Quote |
Chart |
News |
PowerRating) are breaking
out of an ascending triangle with stronger volume. The lean hogs for April
delivery broke out and closed above their resistance of 62. The hogs made a
contract high by closing at 62.725 up .88. Live hogs are on the
TradingMarkets.com Momentum 5 List.
April live cattle
(
LCJ2 |
Quote |
Chart |
News |
PowerRating) is trading
in an ascending triangle. Live cattle rallied close to its resistance today and
broke above the 76 resistance level before settling back to close at 75.825.
Volume has been increasing and we are looking for stronger volume on a break
above the 76 resistance level. Live cattle are on the
TradingMarkets.com Momentum 5 List.
March pork bellies
(
PBH2 |
Quote |
Chart |
News |
PowerRating) are
rallying from their 75.00 support level. Bellies for March delivery closed at
77.025. the overhead resistance for March pork bellies is 80.00.
March cotton
(
CTH2 |
Quote |
Chart |
News |
PowerRating) Watch for a potential breakout above
the 38 resistance level.
|
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) |
|
|
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.