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Chart of The Week - Natural Gas

Posted on by The INO.com Team

Each Week Longleaftrading.com will be providing us a chart of the week as analyzed by a member of their team. We hope that you enjoy and learn from this new feature.

This week’s focus turns to the May 2014 Natural Gas futures (NYMEX:NG.K14.E), where the transition into spring seasonality and warmer weather has weighed down demand outlook. Over the winter months, we had continually seen larger than expected draws from Natural Gas supplies due to extreme winter conditions, but as US weather forecasts continue toward warmer levels, it appears the threat to already tight near-term supplies is diminishing.

Since reaching a high print of 4.893 a few weeks ago on February 24, 2014, May Natural Gas has taken a slight leg lower and consolidated over the past few weeks as it decides where it will head next. The Commitments of Traders report as of March 4th has shown traders have gone from a net long to a net short position on Natural Gas, which hints that the recent strong up-trend may be losing steam. In the near-term, I would agree with this negative bias, and look for a correction in the Natural Gas market.

For a swing trade, I would be a seller as the market moves below Friday’s low of 4.530. My near-term target would be the swing low of 4.393. This position would allow you to use the 20 day moving average as a resistance point, as this indicator has kept the market in check during the recent consolidation period. Continue reading "Chart of The Week - Natural Gas" →

Chart of The Week - Silver

Posted on by The INO.com Team

Each Week Longleaftrading.com will be providing us a chart of the week as analyzed by a member of their team. We hope that you enjoy and learn from this new feature.

In the May 2014 Silver (or Mini Silver) futures, a recent up-trend has consolidated just above the $21.500 level over the past seven trading sessions. Equity markets have been weighed down by a round of profit-taking in the initial morning hours, giving way to strong upside potential in the precious metals markets.

Yesterday's trading session, February 25, 2014, provided an outside reversal on the daily chart. The market failed on a downside move, reversed, and closed above the high at $22.030. This price action is a bullish near-term indicator. Continue reading "Chart of The Week - Silver" →

Currency Chart of The Week - Japanese Yen

Posted on by The INO.com Team

Each Week Longleaftrading.com will be providing us a chart of the week as analyzed by a member of their team. We hope that you enjoy and learn from this new feature.

In the March 2014 Japanese Yen (CME:6J.H14.E), a recovery from the recent two day sell off has been underway this morning. Uncertainty on the state of the US economy has provided support for the Yen. In the event of the stock market undergoing a profit-taking correction after 11 straight sessions in the green, we would expect a short term boost in the Yen.

The March Japanese Yen has recently corrected after posting a recent swing high of 9.927 on February 4, 2014. Since correcting, the 20 Day Moving Average has acted as support on multiple occasions, and we anticipate it will continue to do so in the near term.

Using the 20 day moving average as a support level, I expect another leg up in the Japanese Yen if we break the high in yesterday’s session of 9.829 today. Along with a strong relative strength index reading, the near-term upside target for this move would be the swing high of 9.927. In this instance, it would be fitting to roll stop orders behind the position, as the 200 day moving average sits just below the swing high and may act as resistance. Continue reading "Currency Chart of The Week - Japanese Yen" →

Chart of The Week - Natural Gas

Posted on by The INO.com Team

Each Week Longleaftrading.com will be providing us a chart of the week as analyzed by a member of their team. We hope that you enjoy and learn from this new feature.

This week's focus turns to the March Natural Gas futures, where strong price action stemming from bullish fundamental data gives way to a possible buying continuation. Total Natural Gas storage stands at 1.686 bcf, or 27% below the 5-year average. This draw in supply has been aided by recent extreme cold temperatures across the United States.

After posting a recent swing low of 4.563 last week on Monday, February 10, 2014, the market has experienced a sharp climb in prices. Last week, we also saw the 20 day moving average act as support for the bullish market on multiple occasions, making this indicator a key support level in a swing trade opportunity.

As we start this week, we have seen yet another push up to the 5.400 level, indicating the Natural Gas market still holds a bullish sentiment. Continue reading "Chart of The Week - Natural Gas" →

Chart of The Week - Canadian Dollar

Posted on by The INO.com Team

Each Week Longleaftrading.com will be providing us a chart of the week as analyzed by a member of their team. We hope that you enjoy and learn from this new feature.

This week’s focus turns to the March Canadian Dollar futures, where recent down-trend market structure has given way to a possible continuation of the sell-off in coming days.  After posting a recent swing low of 88.99 on January 31st, the market has since experienced short covering off of the recent sell off.  Last week, we saw consolidation off of the recent short covering.  In weeks past, we have seen multiple tests, and failures, of the 20 day moving average, making this indicator a key resistance point.

As we open this week, if we see yet another failure of the 20 day moving average, traders will likely expect a sell off if the market breaches Friday’s low of 90.17.  Along with a strong average directional index reading, the March Canadian Dollar could have strong downside momentum in the near term.  If this scenario takes place, the likely target would be the March Canadian Dollar’s swing low of 88.99.  Continue reading "Chart of The Week - Canadian Dollar" →