Wednesday’s Futures Setups
The U.S. Dollar index
(
DXH2 |
Quote |
Chart |
News |
PowerRating) took out the
11/23 swing high in another wide-range bar, and this Momentum
5 player could go higher here. The 127.2% retracement is at 119.117 and the
161.8% retracement is at 120.207.
After gapping down, the Canadian dollar
(
CDH2 |
Quote |
Chart |
News |
PowerRating) looks like it may have reversed in a Turtle Soup today. Look to the
long side.
After bouncing off its downtrend line Friday,
10-year notes
(
TYH2 |
Quote |
Chart |
News |
PowerRating) fell today, and looks like they may test the 50%
retracement of the last up-move, around 103.896.
Copper
(
HGH2 |
Quote |
Chart |
News |
PowerRating) continues in its consolidation
just above the neckline in a head and shoulders pattern, and still looks ready
to make a move…one way or the other.
The meats gapped up, with live cattle
(
LCG2 |
Quote |
Chart |
News |
PowerRating)
closing at its 10/9-11/29 downtrend line. If Wednesday’s bar is lower, this will
form an evening star formation, indicating a reversal. Don’t jump to conclusions
just yet, as the gap up may also show some follow-through…we’ll see.
Sugar
(
SBH2 |
Quote |
Chart |
News |
PowerRating) was stopped at the confluence
of its 50-day moving average and its downtrend line, and still looks like a
pullback from lows.
For the past three sessions, cocoa
(
CCH2 |
Quote |
Chart |
News |
PowerRating)
has trading near the 50% retracement of its most recent up move, and has bounced
off the 8/15-10/4 trendline, drawn off the highs. It is also trading in a
triangle. A bounce Wednesday indicates higher prices.
From the Volatility Explosions – Low
Multiple Days Readings list, corn
(
CH2 |
Quote |
Chart |
News |
PowerRating) looks ready to test its lows.
|
Contract
|
Setup
|
Direction
|
Trigger
|
| Copper (HGH2) |
head and shoulders
|
down
|
below
|
| US dollar index (DXH2) |
continuation
|
up
|
above Monday’s high |
| Canadian dollar ( CDH2 | Quote | Chart | News | PowerRating) |
Turtle Soup continuation
|
up
|
above Monday’s high |
| Cocoa ( CCH2 | Quote | Chart | News | PowerRating) |
rally
|
up
|
above Monday’s high |
| Soybeans (SH2) |
pullback from lows
|
down
|
below
|
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.