Could Silver Futures Hit $30?

Silver Futures

Silver futures in the July contract settled last Friday in New York at 25.87 an ounce while currently trading at 27.48 up over $0.60 for the week, continuing its bullish momentum as prices are near a 2 1/2 month high.

I have been recommending a bullish position from around the 25.85 level, and if you took that trade, continue to place the stop loss under the two-week low standing at 25.74 on a closing basis only as the proper exit strategy. The next major level of resistance stands at the 28.00 / 28.25 level as that could be broken in next week's trade, and if that does occur, I think we will test the 30 level soon.

I also have a bullish platinum recommendation, and I think gold and copper will continue to move higher as I see no reason to be short this sector. The U.S dollar has hit a two-month low this week as that is a bullish factor towards silver coupled with the fact that the 10-year note has hit a two-month low in yield at 1.53% as this market fundamentally and technically speaking has everything going for it, so stay long.

TREND: HIGHER
CHART STRUCTURE: SOLID
VOLATILITY: HIGH

Copper Futures

Copper futures in the July contract is trading higher for the 3rd consecutive session, up another 1260 points or 2.75% at 4.7285 a pound, hitting an all-time high this week as this gravy train continues its bullish momentum. Continue reading "Could Silver Futures Hit $30?"

Futures Market Trending Higher

Natural Gas Futures

Natural Gas futures in the June contract is currently trading higher by 3 points at 2.94 as prices are right near a two-month high, continuing its bullish momentum in this week's trade.

I have been recommending a bullish position initially in the May contract at the 2.66 level. If you took that trade, the stop-loss has been raised to the 10-day low, which now stands at 2.73 as an exit strategy as to chart structure will also improve daily; therefore, the monetary risk will be reduced.

Fundamentally speaking, gas prices have underlying support from expectations for increased heating demand for nat-gas after Maxar said below-normal temperatures are expected for the central and eastern U.S. from May 4-8. Strength in foreign demand for U.S. nat-gas supplies is bullish for prices. Gas flows to U.S LNG export terminals on Thursday rose +64% y/y to 11.4 bcf. On Apr 18, gas flows to U.S LNG export terminals climbed to a record 11.921 bcf (data from 2014) according to BNEF.

Gas prices are trading above their 20 and 100-day moving average as this trend remains strong to the upside. I believe the 3.08 level, which was hit on Feb 18, will be breached in the coming days ahead as the entire energy sector remains in a longer-term bullish secular trend. In my opinion, there is room to run to the upside, so stay long as the volatility also should start to escalate in the coming weeks ahead.

TREND: HIGHER
CHART STRUCTURE: IMPROVING
VOLATILITY: AVERAGE

Cotton Futures

Cotton futures in the July contract settled last Friday in New York at 88.80 while currently trading at 87.80, down about 100 points for the trading week. However, prices remain in a strong bullish trend to the upside. Continue reading "Futures Market Trending Higher"

Futures Prices Continue To Push Higher

Rough Rice Futures

Rice futures in the July contract is down 10 cents this Friday afternoon in Chicago, currently trading at 13.23, wanting to break out to the upside, in my opinion.

I'm not involved, however, I will be recommending a bullish position if prices close above 13.60 while then placing the stop-loss under the February 16th low of 13.06 as the risk is around $1,200 per contract plus slippage and commission. The grain market across the board remains very strong as we are hitting multi-year highs. I think rice will start to join the party as the volatility will certainly come back, especially as we enter the summer months. Historically speaking, rice can experience tremendous price swings. The risk/reward is in your favor to take a bullish position.

I believe prices are bottoming out around the 13 level, so keep a close eye on this market as we could be home soon. Prices are trading above their 20 and 100-day moving average, telling you that the trend is to the upside. I think the downside is very limited. If you have been following my previous blogs, you understand that all of my trade recommendations are to the upside as quantitative easing should continue to push prices higher.

TREND: MIXED - HIGHER
CHART STRUCTURE: IMPROVING
VOLATILITY: AVWERAGE

Coffee Futures

Coffee futures in the May contract broke a four-day winning streak ending lower by around 155 points at 133.15 a pound as prices hit a four-week high this week as a long-term bottom looks to have been established, in my opinion. I have been recommending a bullish position over the last month from around the 126 level. If you took that trade, continue to place the stop loss at the 106 area as an exit strategy. However, in next week's trade, I will raise the stop-loss; therefore, the monetary risk will be reduced. Continue reading "Futures Prices Continue To Push Higher"

Futures Performance Looks To Be Mixed

Sugar Futures

Sugar futures in the May contract finished slightly higher this Friday afternoon in New York, up 12 points at 15.30 a pound as prices are hovering right near a 2 week high. I'm keeping a very close eye on this market as I'm looking at a bullish position on any type of weakness as I believe the risk/reward is in your favor, especially longer-term.

Fundamentally speaking, prices continue to be undercut by the raging pandemic in Brazil, which may prompt the government to extend lockdowns that crimp fuel demand and encourage Brazil's sugar mills to divert more cane crushing toward sugar production rather than ethanol production, thus boosting sugar supplies. Brazil reported a record of 4,195 Covid deaths on Tuesday.

I believe the Coronavirus will be reduced significantly in Europe. Therefore demand will come back to these commodities eventually. It is just a matter of when the United States is performing excellent at the current time. Sugar is still trading right at its 100-day moving average but slightly below its 20-day as the trend is mixed to lower, so look to be a buyer on any price weakness. I do not believe the 17.50 level will be the high in this commodity come 2021.

I also have bullish recommendations in coffee, orange juice, and cotton as I think the whole sector remains cheap. The chart structure at the current time is starting to improve daily as we are trading at major support on the monthly chart as I see no reason to be short.

TREND: MIXED - LOWER
CHART STRUCTURE: IMPROVING
VOLATILITY: HIGH

Cotton Futures

Cotton futures in the May contract is higher this Friday afternoon in New York, up another 60 points at 82.16 as prices are right near a 2 week high. The volatility in cotton certainly has increased substantially over the last several weeks.

I have been recommending a bullish from the 79.00 level and if you took that trade, continue to place the stop loss at 66.00 as an exit strategy as I think there is a high probability that a bottom has taken place. Continue reading "Futures Performance Looks To Be Mixed"

Will The Futures Market Start To Rally?

Orange Juice Futures

Orange juice futures in the May contract is currently trading higher by 20 points at 111.20 in a very quiet non-volatile trading manor this Thursday in New York.

At the present time, volatility has come to a crawl because prices historically speaking are depressed as we continually bounce off the critical 110 level, as it certainly looks to me that a bottoming out pattern is at hand. I have been recommending a bullish position from around the 110 level. If you took that trade, continue to place the stop loss under the multi-year low standing at 90 as an exit strategy as we're awaiting some fresh fundamental news to put some volatility back into this commodity.

Juice prices have gone nowhere over the last six weeks, continually bouncing around as prices are still trading below their 20 and 100-day moving average as the trend is to the downside as this was a counter-trend recommendation. I still believe the risk/reward is in your favor to the upside as the downside in price is limited, in my opinion.

I also have bullish recommendations in coffee and cotton as I think the commodity market downturn over the last several weeks is overextended. I think we will start to rally, especially with all the quantitative easing that the federal government continues to create, which should be a supportive factor just like it was in 2011, so stay long.

TREND: MIXED - LOWER
CHART STRUCTURE: EXCELLENT
VOLATILITY: LOW

Sugar Futures

Sugar futures in the May contract are currently trading up 12 points at 14.89 a pound as prices continue their short-term bearish momentum this week as we're hovering right near a three-month low.

I'm sitting on the sidelines looking to be a buyer soon. I think the downside will be limited at these depressed prices, with the major support standing at 14.50, which could be touched this week. You also have to remember we are closed on Friday due to the Good Friday holiday as it will be a shortened trading week. Continue reading "Will The Futures Market Start To Rally?"