Tag: Futures Trading

Copper Futures

Copper futures in the December contract is currently trading at 315.40 after settling last Friday in New York at 317.70 a pound up over 200 points, continuing it's bullish momentum as prices are right near a 3 year high.

Fundamentally speaking, this commodity has everything going for it due to extremely strong demand because of the housing market, which continues its torrid pace. I don't think this situation will change anytime soon as I see no reason to be short copper. If you are long a futures contract, I would place the stop-loss under the 10-day low, which stands at 3.0285, as an exit strategy. However, the monetary risk will also be reduced in next week's trade as the chart structure will continue to improve.

Copper prices are trading far above their 20 and 100-day moving average. This is the strongest member of the precious metal sector. I still think there's significant room to run to the upside as I will be looking at a possible price pullback before entering into a bullish position.

TREND: HIGHER
CHART STRUCTURE: IMPROVING
VOLATILITY: HIGH

Silver Futures

Silver futures in the December contract settled last Friday in New York at 25.66 an ounce while currently trading at 24.82 down about $0.85 for the trading week, experiencing tremendous price swings daily as the volatility is extremely high. Continue reading "Strong Demand Fuels Copper Futures Higher" →

Orange Juice Futures

Orange juice futures in the January contract settled last Friday in New York at 114.35 while currently trading at 111.75, up slightly for the week looking to break out to the upside in my opinion soon. If you take a look at the daily chart, the downtrend line remains intact. However, that is in major jeopardy of being broken in next week's trade.

I will be recommending a possible bullish position if prices break the October 13th high of 118.75 while then placing the stop loss under the spike bottom and contract low, which was touched on October 21st at 107.35 as the risk is around $1,700 per contract plus slippage and commission.

Juice prices are now trading above their 20-day but still below their 100-day moving average as the agricultural sector is starting to look strong. I'm bullish on most commodities and equities at this time, and I think we will finish 2020 on a very strong note.

Orange juice is starting to enter the extremely volatile winter season where a frost can crush the orange juice crop in Florida as the volatility is extremely low. That situation will not last much longer, so play this to the upside as the downside is very limited, as I will not take a short position.

TREND: MIXED
CHART STRUCTURE: EXCELLENT
VOLATILITY: AVERAGE

Silver Futures

Silver futures in the December contract settled last Friday in New York at 23.64 an ounce while currently trading at 25.45 up about $1.90 as prices are near a 7 week high. Continue reading "Will Orange Juice Futures Feel The Squeeze?" →

Silver Futures

Silver futures in the December contract is currently trading at 23.61 an ounce after settling last Friday in New York at 24.67 down over $1 for the week as prices are right near a 5 week low.

At the current time, I'm not involved. Suppose you have been following any of my previous blogs. In that case, you understand that I was looking at a possible bullish position if prices broke the 25.71 level, which never occurred, so I'm sitting on the sidelines being patient as this market remains extremely choppy. Remember, when you trade the commodity markets, trading with the path of least resistance is the way to go over time while also avoiding choppy markets like silver. We await the highly-anticipated U.S election next Tuesday, which certainly will dictate short term price action going forward.

Silver prices are now trading below their 20 and 100-day moving average as the trend has turned to the downside with major support at the 22 level. If that is broken, you would have to think that prices will go down to the 20 area; however, longer-term, I still like silver as I'm just waiting for a buying opportunity.

TREND: LOWER
CHART STRUCTURE: SOLID
VOLATILITY: HIGH

Gold Futures

Gold futures in the December contract settled last Friday in New York at 1,905 an ounce while currently trading at 1,887 down about $20 for the trading week as prices are hovering right near a 3 month low.

I do not have any precious metal trades as I was looking at a possible bullish position if prices closed above the 1,939 level, which never occurred. This market is under pressure because a stimulus agreement will not be reached before the U.S. election next Tuesday as that is disappointing, therefore, pushing the U.S. dollar higher. Continue reading "Silver Futures Remain Extremely Choppy" →

Heating Oil Futures

Heating oil futures in the December contract settled last Friday in New York at 118.48 while currently trading at 116.85, down about 200 points for the week as prices are still stuck in a tight 7-week consolidation pattern looking to break out to the upside in my opinion.

I will recommend a bullish position if prices break the October 9th high of 121.44, which could happen next week as prices are trading right at their 20-day but still below their 100-day moving average, which stands at the critical 123 level.

The volatility in this commodity will start to explode to the upside as we start to enter the winter months as seasonably speaking. That's when prices can have tremendous spikes to the upside due to frigid weather out in the eastern part of the United States. I think demand will also start to come back for this commodity, and if you look at most commodity sectors, they are rallying significantly. I do not have any energy recommendations at the current time, but it looks to me that heating oil has bottomed out as the risk/reward would be in your favor as this is a very large contract.

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

Silver Futures

Silver futures in the December contract are currently trading at 24.61 an ounce after settling last Friday in New York at 24.40, up slightly for the week experiencing high volatility as prices are looking to break out the upside in my opinion despite the recent pullback. Continue reading "Futures Market Looks To Heat Up" →

Orange Juice Futures

Orange juice futures in the January contract settled last Friday in New York at 116.85 while currently trading at 116.60, basically unchanged for the trading week looking for some fresh fundamental news to dictate short-term price action.

I am not involved, but I do have a bullish bias towards the upside, especially as we enter the highly volatile winter season, producing a frost in the State of Florida, sending orange juice prices sharply higher. That situation has happened on multiple occasions, historically speaking. If you take a look at the daily chart, the uptrend line remains intact. It looks to me that the 110 level will hold, and I will be looking at a bullish position in the coming days ahead as the chart structure will improve; therefore, the risk/reward is becoming more in your favor.

Orange juice prices are trading right at their 20-day moving average as the trend is mixed at the current time with average volatility. Still, that situation will not last much longer as the volatility during the winter months can become extremely violent, so look to play this to the upside.

TREND: MIXED
CHART STRUCTURE: IMPROVING
VOLATILITY: LOW

Silver Futures

Silver futures in the December contract settled last Friday in New York at 25.10 an ounce while currently trading at 24.45 down about $0.65 for the trading week as prices are still stuck in a 3-week consolidation pattern.

I do not have any precious metal recommendations, however, I'm keeping a close eye on a bullish silver trade here in the coming days ahead. I still think prices will break that $30 level, which was hit back in August. The chart structure is starting to improve daily; therefore, the monetary risk will start becoming more in your favor next week. I will be recommending a bullish position if prices close above the 25.71 level while then placing the stop-loss under the Sep 24 low of 21.81 as an exit strategy. Continue reading "The Seasonal Futures Market Is Upon Us" →