Gold Futures
Gold futures in the February contract is currently trading at 1,516 an ounce after settling last Friday in New York at 1,480 up about $36 for the trading week hitting a 7-week high as the commodity markets are starting to follow the S&P 500 to the upside.
I have been recommending a bullish position from around the 1,495 level if you took that trade continue to place to stop loss under the 10-day low standing at 1,474 as an exit strategy as the chart structure will also improve next week as the risk will also be lowered. Gold prices are trading above their 20 and 100-day moving average telling you that the trend is to the upside with the next major level of resistance on the daily chart at 1,525 / 1,550 as that could possibly be tested in next week's trade. Gold is trading higher for the 4th consecutive session as
I also have a bullish silver trade as I think the commodity markets in 2020 will have a significant rally to the upside as historically speaking, prices look cheap. The U.S. dollar is hovering right near a 4 month low as that is a bullish factor towards higher gold prices as this is the 1st time in a while that the precious metals and stock market are moving higher in unison which is a terrific thing to see so stay long.
TREND: HIGHER
CHART STRUCTURE: SOLID
VOLATILITY: AVERAGE
Silver Futures
Silver futures in the March contract settled last Friday in New York at 17.22 an ounce while currently trading at 18.01 up for the 6th consecutive session hitting a 7-week high.
I have been recommending a bullish position from around the 17.45 level, and if you took that trade, continue to place the stop-loss at 16.56 as an exit strategy. The U.S. dollar is trading right near a 4 month low as that is a fundamental bullish factor for the entire precious metal sector in the coming weeks ahead.
I also have a bullish gold trade as the precious metals look to move higher as silver is now trading above its 20 and 100-day moving average, telling you that the trend is to the upside. If you take a look at the daily chart, the next major level of resistance stands between 18.50 /19.30, which I think could be touched in next week's trade as a positive outlook economically speaking in 2020.
I think it will push all asset classes higher as I see no reason to be short. If you are not involved in this trade, wait for some type of price pullback therefore lowering the monetary risk before entering into a bullish position.
TREND: HIGHER
CHART STRUCTURE: SOLID
VOLATILITY: AVERAGE
Lean Hog Futures
Hog futures in the February contract settled last Friday in Chicago at 70.67 while currently trading at 70.90 unchanged for the week as prices are still hovering right near a 5 week high.
I have been recommending a bullish position from around the 69.60 level, and if you took that trade continue to place the stop loss under the contract low standing at 63.67 as that will be raised next week to the 10-day low. Volatility has slowed down over the last couple of weeks as we are in the holiday markets, which generally slows down volatility. Still, I do believe as we enter 2020, we will experience many bullish trends to the upside, including the hog market.
The trade agreement with China certainly is a fundamental bullish factor for higher prices ahead even though we have large inventories in the United States. I do believe the risk/reward remains in your favor to the upside, as I do think the downside is minimal. Hog prices are trading above their 20-day but still below their 100-day moving average as the trend is mixed to higher. I think the volatility will expand to the upside in the coming weeks ahead, so stay long as this is my only livestock recommendation.
TREND: HIGHER - MIXED
CHART STRUCTURE: EXCELLENT
VOLATILITY: AVERAGE
Orange Juice Futures
Orange juice futures in the March contract settled last Friday in New York at 104.15 while currently trading at 102.15 down about 200 points for the trading week as the volatility certainly has increased over the previous month.
I have been recommending a bullish position from around the 103.30 level, and if you took that trade, continue to place the stop loss under the contract low standing at 97.90 as an exit strategy. However, for the bullish momentum to continue, prices have to break the December 23rd high of 104.80 as I remain bullish.
Juice prices are trading above their 20-day but still below their 100-day moving average as the 7/10 day weather forecast for the State of Florida still has normal temperatures as there is no frost threat at this time as that is what is keeping a lid on prices here in the short-term.
I have many bullish recommendations, including trades in sugar and cotton. I think all of the agricultural markets are headed higher as the risk/reward remains in your favor, so stay long and let's see what next week's trade brings as I do believe that 2020 will bring many bullish trends as the tide has finally turned.
TREND: HIGHER
CHART STRUCTURE: EXCELLENT
VOLATILITY: INCREASING
If you are looking for a futures broker feel free to contact Michael Seery at 630-408-3325 and he will be more than happy to help you with your trading or visit www.seeryfutures.com
What do I mean when I talk about chart structure and why do I think it’s so important when deciding to enter or exit a trade? I define chart structure as a slow grinding up or down trend with low volatility and no chart gaps. Many of the great trends that develop have very good chart structure with many low percentage daily moves over a course of at least 4 weeks thus allowing you to enter a market allowing you to place a stop loss relatively close due to small moves thus reducing risk. Charts that have violent up and down swings are not considered to have solid chart structure as I like to place my stops at 10-day highs or 10-day lows and if the charts have a tight pattern that will allow the trader to minimize risk which is what trading is all about and if the chart has big swings your stop will be further away allowing the possibility of larger monetary loss.
Corn Futures
Corn futures in the March contract settled last Friday in Chicago at 3.87 a bushel while currently trading at 3.90 up about $0.03 for the trading week as prices have now hit a 7-week high continuing its slow grinding bullish momentum to the upside.
I have been recommending a bullish position from the 3.87 level, and if you took that trade, continue to place the stop loss under the contract low standing at 3.65. The chart structure will start to improve in next week's trade; therefore, the monetary risk will also be lowered.
Corn prices are trading above their 20 and 100-day moving average for the 1st time in months as the trend is turning to the upside. I do believe prices will crack the $4 level in the coming weeks ahead as we wait for the next crop report, which is around 2 weeks away as that certainly will dictate short-term price action.
Fundamentally speaking last week's Cattle on Feed and Monday's Hogs and Pigs reports showing record or near-record inventories are supportive of the corn feed consumption estimates. Trade agreements with China, Mexico, and Canada certainly are bullish corn and the grain market across the board, as I think 2020 will have many bullish trends to the upside.
I do think a long-term bottom is in place, so continue to play this higher because I believe we are just scratching the surface.
TREND: HIGHER
CHART STRUCTURE: EXCELLENT
VOLATILITY: LOW
Cotton Futures
Cotton futures in the March contract is trading higher for the 7th consecutive session after settling last Friday in New York at 67.96 while currently trading at 69.10 up about a 115 points for the trading week hitting a 7-month high. I have been recommending a bullish position from the 66.60 level, and if you took that trade, continue to place the stop loss under the 10-day low, which now stands at 66.25 as the chart structure will start to improve daily starting next week.
I only have bullish recommendations, and if you have been following any of my previous blogs, you understand that I think 2020 will provide strong trends to the upside as trade agreements have lifted the cloud over many of these agricultural markets. I see no reason to be short. Large money managed funds are long as they believe higher prices are ahead. I still think prices could crack the 70 level, possibly in today's trade, as the volatility remains very low as we continually grind higher daily.
I also have bullish recommendations in sugar and in orange juice as money flows are starting to enter the commodity markets for the 1st time in years. The U.S. equity market continues to hit all-time highs daily, which has become a supportive factor.
TREND: HIGHER
CHART STRUCTURE: EXCELLENT
VOLATILITY: LOW
Sugar Futures
Sugar futures in the March contract settled last Friday in New York at 13.54 a pound while currently trading at 13.50 up about 4 points for the trading week as the volatility remains extremely low. I have been recommending 3 bullish positions with an average price of around 12.79 over the last month or so, and if you took that trade, the stop loss has now risen to 13.22 as an exit strategy as the chart structure is outstanding at the current time. For the bullish momentum to continue, prices have to break the 5 month high, which was hit on December 13th at 13.67 in my opinion as the agricultural markets look bullish across-the-board.
I have multiple bullish recommendations. Sugar prices are riding the coattails of crude oil, which hit another 3-month high in today's trade as sugar is used as biodiesel as historically speaking prices still look cheap, in my opinion. I still believe the 14 level will be broken in the coming days ahead as we need some volatility or some fresh news to push prices higher, so stay long as I see no reason to be short any of the commodity markets.
TREND: HIGHER
CHART STRUCTURE: EXCELLENT
VOLATILITY: LOW
Soybean Meal Futures
Soybean meal futures in the March contract settled last Friday in Chicago at 302 a ton while currently trading at 300 basically unchanged for the trading week. The volatility has slowed down as we are in the midst of the holiday trade, which generally slows down volatility in the short term.
I will be recommending a bullish position if prices break above the 304 level while then placing the stop loss under the contract low, which was hit on December 2nd at 296. The risk would be around $800 per contract plus slippage and commission as the risk/reward is in your favor, in my opinion. The trade agreement between the United States and China will be finalized in the coming weeks ahead, as this is an extremely bullish fundamental factor towards the entire soy complex.
I see no reason to be short any commodities as we head into 2020, so play this to the upside as significant rallies could happen in the coming year ahead.
TREND: MIXED - HIGHER
CHART STRUCTURE: EXCELLENT
VOLATILITY: LOW
If you are looking for a futures broker feel free to contact Michael Seery at 630-408-3325 and he will be more than happy to help you with your trading or visit www.seeryfutures.com
Michael Seery, President
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There is a substantial risk of loss in futures, futures option and forex trading. Furthermore, Seery Futures is not responsible for the accuracy of the information contained on linked sites. Trading futures and options is Not appropriate for every investor. My opinion in this blog are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any futures or option contracts.
