CommodityTrends Weekly Newsletter

Last week I wrote: "If ZON26 can close below the lower boundary of its large triangle pattern, it would trigger a downside entry. That said, the daily chart 50% level sits just beneath the triangle, so ideally I’d like to see price close below that level as well before considering a short entry. If a short entry is triggered, the initial target will be the gold weekly chart support level at 317-0."

An entry was triggered to the downside on April 20. The initial stop loss can be placed above the April 17 high. The initial target is the gold weekly chart support level at 317-0. 

Jul Soybean Oil made a new #1 top point at72.64, which was the April 22 high. Keep watching for all of the 1-2-3 strategy criteria are met.

Jun Natural Gas may be working on a new possible #1 bottom point at 2.658, which is today’s low.

However, we still need confirmation. To confirm this as the new #1 bottom point, price needs to form a higher low to the right of that low. Until that happens, the pattern is not confirmed.

In the meantime, it is important to note that price is trading inside a purple monthly chart support zone. This area is also just above an overlapping weekly chart support zone, which can create a very strong level of support.

For now, this is a market to keep watching closely.

Jun Live Cattle has developed a #1 top point at 252.000 (the high on April 14). The #2 point is 240.925 (the low on April 23). Keep watching for all of the 1-2-3 strategy criteria are met.

Jul Cotton #2 has produced a new #1 point at 81.79 (the high on April 22). Keep watching for all of the 1-2-3 strategy criteria to be met.

May Class III Milk continues trading in a large consolidation pattern. I'm currently watching for price to breakout of the trading range. If it does, I'll then watch for a retrace back to the breakout level and then consider an entry in the direction of the breakout via a fish hook pattern. For now, I'm watching from the sidelines.