CommodityTrends Weekly Newsletter

May Soybean Oil has now formed both the #1 and #2 top points, and it has done so inside a monthly chart resistance zone. Keep watching to see if the rest of the 1-2-3 strategy criteria fall into place.

May High Grade Copper has developed a large 1-2-3 top formation. 

Previously I wrote: "If price can close below the blue up trend line and the gold horizontal weekly chart support level, an entry to the downside will be triggered. Since price hasn't done either as of the time of this writing, I'm now going to focus solely on the gold horizontal weekly chart support line. If price can close below that level (5.7635) I'll consider a short entry. If filled, the initial stop loss can be place above recent resistance. The initial target is the daily chart 50% level (blue dashed-dotted line). For now, I'm still watching from the sidelines."

The entry was triggered on March 13 (after I sent out this letter). The initial target was hit on March 18. 

Last week I wrote: "If trading additional positions the protective stop can now be moved down to just above the March 20 high." If this had been done, the stop would have been triggered the next session--March 23.

Jun Live Cattle is on the verge of possibly triggering a MET to the upside. A break of the Feb. 19 high will trigger the entry. If filled, stops can be placed below recent lows (depending on risk tolerance). The initial target is the bottom of the weekly chart resistance zone at 244.575.

Last week I wrote: "Jun Lean Hogs is on the verge of triggering an MET entry to the downside. If the entry is filled, stops can be placed above recent resistance, depending on your risk tolerance. The initial downside target is the top of the weekly chart resistance zone near 101.975."

The entry was filled on March 20. Price has since bounced off of a weekly chart support level (gold horizontal line). So be sure to keep your stops in place. The next resistance level is quite a bit higher. It's the purple monthly chart horizontal line at 108.  

May Cocoa has developed a 1-2-3 bottom formation. The #1 point at 2846 (the low on March 02). The #2 point is at 3480 (the high on March 11). The #3 point is 3080 (the low on March 26). If price breaks above the two purple horizontal trend lines just above current price, it will trigger a long entry. The initial stop can be placed below the #3 point, and the first target would be the monthly chart purple resistance line at 3756. Keep in mind, if price drops below the #3 point before the buy order is filled, the setup will be negated and I’ll then begin watching for a new #3 point to form.

I’m watching for Apr Class III Milk to break out of its current large consolidation pattern. Which means I’m currently on the lookout for a possible MET trigger in the direction of the breakout. For now, I’m staying on the sidelines.