What The Chart Says About Cotton

While commodities have had an awful year compared to other asset categories, cotton ($CT_F) is currently flat YTD. In my commentary for TraderPlanet this week I dig into the latest price action of the cotton ETN ($BAL) as well as the seasonality characteristics and extreme in sentiment for the cotton market.

Here’s a piece:

Seasonality can be a big factor when it comes to commodities, and cotton doesn’t escape this. When looking at the average price action over the last 5 years, 10 years, 15 years, and even 20 years, its low point for cotton is often found in November with prices rising on average until March.

Go read the rest: What The Chart Says About Cotton (TraderPlanet)

Disclaimer: Do not construe anything written in this post or this blog in its entirety as a recommendation, research, or an offer to buy or sell any securities. Everything in this post is meant for educational and entertainment purposes only. I or my affiliates may hold positions in securities mentioned in the blog. Please see my Disclosure page for full disclaimer. Connect with Andrew on Google+, Twitter, and StockTwits.

Can Long-Term Support Hold Up For Silver?

Like gold, silver hasn’t had a great 2013, really it hasn’t a great last three years. What is now, in my opinion, a long-term down trend, its good to look at the historical price action of a market to see if there are any levels of support that might come into play.

Today’s chart is a monthly view of the spot silver ($SI_V) market going back to 2002. The trend line on the chart below looks at the lows off 2003 and 2008. This line has provided pretty good support this year, acting as a base for the nearly 25% advance in August.

We are now back this long-term trend line as well as the 100-month Moving Average. There’s no doubt that the bears are currently in control of silver as shown by the significantly lower lows from the 2011 high. Will this trend line off the 2003 low and 100-MA act as support? So far sellers haven’t eased off the gas or given any hints to the end of their conviction, but we’ll see what happens if we do in fact get a break or if the selling subsides.

silver

Disclaimer: Do not construe anything written in this post or this blog in its entirety as a recommendation, research, or an offer to buy or sell any securities. Everything in this post is meant for educational and entertainment purposes only. I or my affiliates may hold positions in securities mentioned in the blog. Please see my Disclosure page for full disclaimer. Connect with Andrew on Google+, Twitter, and StockTwits.

Are Aussie Dollar Bulls Waving A Flag Pattern?

The Aussie Dollar appears to have created a flag pattern with the potential for an upside breakout to continue the trend that began a few months ago. This is the topic of my TraderPlanet article for this week.

Here’s a piece:

The most recent price action in $FXA is what I’d like to focus on today. We have what’s called a flag pattern, which is often considered a pattern of continuation for the previous trend.   The short-term up trend in FXA from September to late-October acts as the flagpole and helps create an estimated target if the flag pattern breaks to the upside. The flag itself is created in the narrow channel that’s taken place over the last month.

 

Read the rest: Are Aussie Bulls Waving A Flag Pattern? (TraderPlanet)

Disclaimer: Do not construe anything written in this post or this blog in its entirety as a recommendation, research, or an offer to buy or sell any securities. Everything in this post is meant for educational and entertainment purposes only. I or my affiliates may hold positions in securities mentioned in the blog. Please see my Disclosure page for full disclaimer. Connect with Andrew on Google+, Twitter, and StockTwits.