CommodityTrends Weekly Newsletter

May Soybean Oil rallied to a new 12-month high this week and formed a new #1 top point at 70.49 (the high on April 7). Keep watching for all of the 1-2-3 strategy criteria to be met.

May Natural Gas made a new 12-month low today at 2.628 (at the time of this writing). Because price is inside of a very large monthly chart support zone (purple rectangle), I'm not interested in taking a short position. However, I will patiently watch to see if a new bottom formation develops. 

Two week's ago I wrote: "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."

The entry was triggered on March 30, and the initial target was reached on April 2. For any remaining positions, the stop can now be moved up to just below the April 8 low. This helps protect open profits while still giving the market a little room to move.

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. Since then, price bounced off a weekly chart support level, shown by the gold horizontal line. Stops would have likely been triggered on the April 06 spike up above the March 30 high.  

Last week I wrote: "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."

An entry was triggered on March 31. As noted above, the initial stop was placed below the #3 point. Price broke below that level on April 7, triggering the stop.

Because FND is on April 24, I will stop watching this contract at this time.

To allow more time for a setup to develop, I've switched from watching Apr Class III Milk and I'm now watching May Class III Milk. Price is currently trading inside of a large consolidation pattern, so for now I'm watching from the sidelines.