Tag: Futures Trading

Natural Gas Futures

Natural gas futures in the March contract settled last Friday in New York at 1.91 while currently trading at 1.71 lower for the 3rd consecutive session while hitting a 4 year low. Fundamentally speaking, according to Energy Weather Group, the U.S. winter through January is the 2nd warmest winter season in 70 years, which has reduced heating demand for natural gas coupled with elevated inventories.

All commodity sectors, including U.S. equities, are on the decline as nobody wants to own anything until the Coronavirus shows more clarity. The next major level of support is down at the 150 level. I see no reason to be a buyer at this time as the entire energy sector is experiencing bearish trends, and if you are short, stay short as gas prices are trading far below their 20 and 100-day moving average as the trend clearly is to the downside.

TREND: LOWER
CHART STRUCTURE: POOR
VOLATILITY: AVERAGE

Silver Futures

Absolute panic has entered all commodity and stock sectors this week because the Coronavirus is spreading worldwide, sending huge volatility across-the-board. Silver prices hit a 5 month high on Monday as now prices are at a 2 month low after settling last Friday in New York at 18.61 an ounce while currently trading at 17.20 down about $1.40 for the week.

I have been recommending a bullish position from around the 18.13 level while getting stopped out around the 17.20 area as it is time to move on and wait for some sanity to come back into these markets. Continue reading "Futures Market Is Not Immune To Coronavirus" →

Gold Futures

Gold futures in the April contract is higher by $28 at 1,648 an ounce or 1.71% after settling last Friday in New York at 1,586 up about $63 for the week higher for the 7th consecutive session while also hitting a 7-year high.

At the current time, I'm not involved. However, if you have been reading my previous blogs, I am bullish gold as I think we will crack the 1,700 level, possibly in next week's trade, as there is too much uncertainty about the coronavirus at the current time.

Presently I have bullish recommendations in platinum and silver as the whole sector looks to move higher, in my opinion. If you are long a futures contract, I would continue to place the stop loss at major support standing at 1,550 as this trend is real and very strong to the upside as I see absolutely no reason to be short gold.

Fundamentally speaking, the concern that the coronavirus is spreading outside of China undercut stock prices and boosted the safe-haven demand for precious metals. Coupled with the fact on lower Chinese interest rates in the wake of the recent move by the People's Bank of China (PBOC) to cut rates by -10 bp on various bank loans and repo operations.

TREND: HIGHER
CHART STRUCTURE: POOR
VOLATILITY: HIGH

Silver Futures

Silver futures in the March contract is trading higher for the 6th consecutive session up another $0.26 at 18.58 an ounce or 1.45% after settling last Friday in New York at 17.73 up about 83 cents for the trading week as prices are near a 5-month high.

I have been recommending a bullish position from the 18.13 level, and if you took that trade, continue to place the stop loss under the 10-day low, which now stands at 17.44 as an exit strategy. The chart structure will not improve for another four trading sessions, so you will have to accept the monetary risk at this time. Continue reading "Coronavirus Boost Safe-Haven Futures" →

Silver Futures

Silver futures in the March contract settled last Friday in New York at 17.69 an ounce while currently trading at 17.77 up slightly for the trading week as prices have been stuck in the mud over the last month. I am not involved as I'm waiting for a breakout to the upside to occur, which would happen if prices crack the January 27th high of 18.37. I will not take a short position because I think the downside is very limited.

Silver prices are trading right at their 20-day while still above their 100-day moving average as the Coronavirus is continuing to spread, and I think that will support prices here in the short-term. The chart structure will also start to improve in next week's trade as we could be involved relatively soon with gold prices remaining strong.

The volatility at the current time remains relatively low. However, I don't think that the situation is going to last much longer as fundamentally, and technically speaking, I believe this commodity looks good. Keep a close eye on this market as we could be involved soon as I think the risk/reward is in your favor.

TREND: MIXED
CHART STRUCTURE: IMPROVING
VOLATILITY: LOW

Gold Futures

Gold futures in the April contract settled last Friday in New York at 1,573 an ounce while currently trading at 1,585 on concerns about the Coronavirus continuing to spread, especially in China helping support prices here in the short-term. I'm not involved, but I do believe higher prices are ahead, and if you are long a futures contract, Continue reading "Are Silver Futures Set To Breakout?" →

Gold Futures

Gold futures in the April contract is trading higher for the 3rd consecutive session after settling last Friday in New York at 1,578 an ounce while currently trading at 1,591 as prices are right near a 7 year high.

At the current time, I'm not involved, but I do believe higher prices are ahead as there is so much uncertainty about the Coronavirus. If that situation becomes worse, you will see massive money flows continue to enter the bond and gold market. If you are long a futures contract, I would place the stop loss under the 10-day low standing at 1,552 as an exit strategy as prices are trading above their 20 and 100-day moving average telling you that the trend is to the upside.

In my opinion, I believe prices will test the January 8th high of 1,619, possibly in next week's trade. I see no reason to be short gold at this time. Volatility is average, and I think it could start to expand tremendously to the upside, especially if the Coronavirus continues to spread as quickly as it has as. Nobody understands how bad this situation can become, as that will continue to support gold prices in the short-term.

TREND: HIGHER
CHART STRUCTURE: IMPROVING
VOLATILITY: AVERAGE

Platinum Futures

Platinum futures in the April contract settled last Friday in New York at 1,010 an ounce while currently trading at 963. I had been recommending a bullish position over the last month from around the 974 level as it is time to exit as prices are right near a three week low. Continue reading "Coronavirus Puts Pressure On Futures" →