CommodityTrends Weekly Newsletter

As of Friday, October 4, 2024 16:39 CT

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View the trade opportunities and commodity markets Jim is watching to see where the markets may be headed.

Summary

Top Down Analysis - Japanese Yen


The Dec Japanese Yen rallied off of its July lows to make a new recent high on September 16. Since this high was put in price has been selling off. Today's price action broke key support established back in mid-August has been under huge selling pressure the few months. It's -3.58% for the last month.

Because of the selling that's currently underway in this market, I decided to make it the focus of this week's Training Video. In this video, I analyze the market from the top down. I review the monthly, weekly and daily charts and discuss key support/resistance zones and levels. I also chat about the price action I'd like see shape up to provide a possible trading opportunity. 

I encourage you to watch this video to learn how to perform this type of analysis for any market you might be reviewing. You can find the video in the Training Video section of our website. The video runtime is 06:07. Enjoy!


Markets I'm Watching

View the trade opportunities and markets Jim is watching along with the Trend Seeker rating per commodity to see where the market is headed. Here are the markets and opportunities I am watching right now. For more information about these markets, be sure to check My Chart Book and CommodityTrends Daily Video Service.

Grains Market

Dec Soybean Oil developed a 1-2-3 bottom formation and price has moved up nicely since last Friday.

Two weeks ago I wrote. . . "A long paper trading entry can be executed at current levels. The initial stop loss can be placed just below the #3 point. The initial target is the purple monthly chart resistance line at 42.11." 

The initial target was hit on Sept. 23.

Last week I wrote. . . "If holding additional positions, the stop could be moved to just below today's low (Sept. 27)." However, at this point, to help reduce risk, I'd consider moving the stop up to just below the top of the lower blue rectangle -- below 43.14.




Grains Market

Dec Wheat developed a second #2 point and produced a second #3 point. Another paper trading entry could have been considered on a break above the Sept. 20 high. 

Because of the reversal this week out of the blue daily chart resistance zone, the protective stop could be moved up to just below the blue horizontal support level of 582-2.

Metals Market

Jan Platinum has formed a triangle pattern inside of a weekly chart resistance zone. If price breaks out to the downside of the zone it could trigger a paper trade to the downside. If filled, the initial stop loss can be placed Oct. 02 high. The initial target is the weekly 50% level at 955.1. Keep watching.

Currencies Market

The Dec Australian Dollar has developed a left shoulder and a head of a head and shoulder top formation. Keep watching for a right shoulder to develop to set up a possible opportunity to the downside.

Financials Market

Dec 30-Year T-Bond broke below the #2 point this week and is now trading inside of a blue daily chart support zone. If price bounce and rallies to the downtrend line I'd watch for a possible inverted fish hook to develop. If one does take shape, a possible paper trading short entry could be considered.

Be aware that this market is very volatile!

WARNING: FUTURES AND OPTIONS trading involves high risks and YOU can LOSE a lot of money. The risk of loss in trading commodity futures and options contracts can be substantial. There is a high degree of leverage in futures trading because of the small margin requirements. This leverage can work against you as well as for you and can lead to large losses as well as large gains. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In the event the account has losses, you may need to deposit additional funds to maintain margin or to initiate new positions as called for by the trading program. This brief statement cannot disclose all the risks and other significant aspects of the commodity markets. You should carefully study commodity trading and consider whether such trading is suitable for you in light of your circumstances and financial resources before you trade. Please know that the above services are not intended to nor shall they provide any commodity trading advice based on or tailored to your particular circumstances or characteristics such as any of your personal financial details, current investments or trading accounts. Past results are not necessarily indicative of Future Results.