Today we take a look at commodities like sugar, soybean oil, wheat , coffee that, unfortunately and unwisely, are not as popular among retail traders….great opportunities can be find among these products as I did last week…first in cocoa.
and next in soybean oil.
Both are breaking out. Cocoa is now testing important long-term resistance at 2060-2080 area…if broken we should see a move higher towards 2300.
Soybean Oil has already broken out trading above the Ichimoku cloud making higher highs and higher lows.
Wheat was my main focus since June back when it broke out of the long-term downward sloping wedge pattern…we nailed the pull back….
subscribers saw me buy futures and options…..
Now what?
Possible back test area is the previous highs around 460$ and the cloud support around 430-440$. It is not necessary to go there. We will remain focused on its price action and the form of the price movement and we will enter again as I believe it has much more room to the upside to go.
Coffee
Important breakout above the previous lows area and above the Trend line and the Ichimoku cloud. Unfortunately nor the rise neither the decline look impulsive and it is difficult to map a possible path for the coming months.
Sugar
Most probably in a wave 4 corrective pattern. Price remains below the Ichimoku cloud and the 23.6% Fibonacci retracement. As long as price holds above 13.70$ it can continue higher towards the 38% Fibonacci retracement level which is the usual spot for 4th waves.
This was just a small idea on what I see in the commodities sector….cocoa and soybean oil are my main focus currently but wheat always on my watch list….thank you for taking the time to catch up on my thinking.
Disclosure: None of the information or opinions expressed in this blog constitutes a solicitation for the purchase or sale of any security or other instrument. Nothing in this article constitutes investment advice and any recommendations that June be contained herein have not been based upon a consideration of the investment objectives, financial situation or particular needs of any specific recipient. Any purchase or sale activity in any securities or other instrument should be based upon your own analysis and conclusions.