CommodityTrends Weekly Newsletter

Jul Soybean Oil has a #1 top point at 76.99 (the high on May 05). The #2 point is 72.95 (the low on May 14). Keep watching to see if all of the 1-2-3 strategy criteria are met.

Jul High Grade Copper has developed a #1 top point at 6.7160 (the high on May 13). Keep watching to see if all of the 1-2-3 strategy criteria are met. 

Last week I wrote the following: "Jun Natural Gas developed a #1 bottom point at 2.592 (the low on April 30). The #2 point is 2.883 (the high on May 4). The #3 point is 2.676 (the low on May 7). A break above the #2 point would trigger an entry to the upside. The initial stop loss can be placed just below the #3 point. The initial target is just below the top of the purple monthly chart zone. You can see this illustrated in the sample risk/reward box I’ve drawn on the chart. Please keep in mind, this is only an example."

"It is important to note that price is currently trading inside a purple monthly chart support zone. However, the #2 point is sitting just below two weekly chart resistance levels, marked by the gold horizontal lines. That area could create a fairly strong ceiling for the market. Because of that, price may have some trouble pushing through this area without a strong breakout move."

This setup is still active. However, please note that First Notice Day (FND) is May 28, so positions should be exited 3–5 days before that date.

Jun Live Cattle has developed a #1 top point at 256.625 (the high May 1). The #2 point is 246.925 (the low on May 7). The #3 point is 255.225 (the high on May 14). A paper trading entry to the downside will be triggered if price breaks below today's low. If filled, the initial stop loss can be placed just above the #3 point. The initial target is the top of the gold weekly chart zone at 248.050.

Please note that if price breaks above the #3 point before triggering an entry, the proposed entry will be negated. At that point, we’ll need to wait for a new #3 point to form.

Jul Cotton #2 has developed a #1 top point at 88.88 (the high on May 13). Keep watching to see if all of the 1-2-3 strategy criteria are met.

Two weeks ago I wrote. . . "Strategy Inc. (MSTR) also triggered an MET entry to the upside. (See the circled high.) Just above the trigger point is a wick that formed on January 14. Wicks can often act like magnets and pull price toward them, so keep a close eye on that price zone. Sure enough, price filled in the wick on MSTR. Since then, price pulled back leaving behind another possible entry level--the May 5 high."

Price did break this level and triggered another MET entry to the upside. However, since the second entry triggered price has retraced and could have triggered stops. For now, I'll stop watching this stock.