🚀 June’s AI-picked stocks soar, with Adobe +18.1% in 11 days. Don’t miss July’s upcoming picks.Unlock full list

New Opportunities Emerge in Commodities as Wheat, Natural Gas, Sugar Prices Bottom

Published 04/23/2024, 12:59 AM

In our research as we start a new week, there is a good chance that:

  1. Wheat Futures have bottomed.
  2. Natural gas futures bottomed.
  3. Sugar Futures bottomed.

And while gold and silver futures are correcting, we are still bullish in the longer term.

We do not expect the precious metals to peak until 2025-2026.

On another note, Bitcoin, another commodity, should it clear through 68k we see a test of the highs at least.

And the almighty US dollar appears to have peaked already.

For now, though, let us focus on natural gas and the illustrated daily futures chart.Natural Gas-Price Chart

This is a chart of the natural gas May 2024 contract.

While future months have traded above their 50-daily moving averages (blue line), the May contract has yet to clear it.

As natural gas futures go, we want to see the front month leading to fully support the case for a potential bottom.

As many of you trade the ETF UNG, it is very important to always base any trade-in UNG on what the underlying contract is doing.

In the case of May futures, 1.85 is the price to trade above.

As far as wheat and sugar, the same rule applies.

Make sure you look at the spot underlying futures before buying the corresponding ETFs.

ETF Summary

  • S&P 500 (SPY) 480 should be bottom-line support but a move over 500 could give a bounce
  • Russell 2000 (IWM) 192 support
  • Dow (DIA) 372 the January low
  • Nasdaq (QQQ) 411 the January 6-month calendar range low and support
  • Regional banks (KRE) 45-50 range
  • Semiconductors (SMH) 204 now resistance with support at 175
  • Transportation (IYT) 67 pivotal with 65 bigger support
  • Biotechnology (IBB) 128 pivotal 123 support
  • Retail (XRT) 71.50 area needs to hold
  • iShares iBoxx Hi Yd Cor Bond ETF (HYG) 75.50 the 200 DMA-through 76.50 relief!

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.