CommodityTrends Weekly Newsletter

Sunset over a corn field
Grains

Dec Soybean Oil has developed a large 1-2-3 bottom formation. A break above the June 06 high will trigger an entry to the upside. If filled, the initial stop loss can be placed just below the #3 point. The initial target is the #2 point at 47.46 (the May 20 high). Keep watching.

Metals

Jul High Grade Copper formed a 1-2-3 top. Two week's ago I wrote. . . "An entry to the downside was triggered on May 30 when price broke below the May 29 low. The initial stop loss could have been placed just above the #3 point. The initial target is the top of the daily zone just below and was triggered today. The stop loss for any remaining positions can be moved to the entry price. If price continues to move lower down to the purple monthly chart support line at approx. 4.4850, the stop on the remaining positions could then be moved down to just above the blue horizontal line at 4.6790, which would be resistance at that point."

Because of recent price action, the stop loss for any remaining positions can be moved to just above the June 12 high.

Financials

Sep 30-Year T-Bond has developed a large 1-2-3 bottom formation. Two week's ago I wrote. . . "Price triggered an entry to the upside earlier today. That said, any retrace to support at 115-24 could provide a long entry opportunity. If filled, the initial stop loss can be placed just below the #3 point. The initial target is just below the blue horizontal resistance line at 118-12. The initial target was hit on June 04. The stop loss on any remaining positions can be moved to just below the blue horizontal line at 116-28."

A stop loss on any remaining positions at the 116-28 level would have been triggered on June 10.

Meats

Aug Live Cattle broke lower today and traded inside of the gold weekly chart support zone and then bounced. I'm now watching to see if a reversal pattern will develop to potentially set up an entry to the upside.


Foods/Softs

Dec Cotton #2 has produced a new #1 bottom point inside of a weekly support zone. Keep watching for a reversal pattern to take shape.

Jul Sugar #11 developed a 1-2-3 bottom formation. An entry to the upside was triggered on June 04. The initial stop loss could have been placed just below the #3 point. The initial target is the bottom of the daily zone just above at approx. 19.37. Price did hit this level on June 07, but for a limit order to "guarantee" a fill price must trade through it (above it in this case). Price did indeed trade "through" the target price on June 13.

Because First Notice Day (FND) is a little over two-weeks away, if trading any additional contracts the stop could be moved to just below the June 13 low. If the stop doesn't get triggered prior to FND, I'd consider exiting the position by Friday, June 21.


On the date of publication, Jim Prince did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.