Watching the Commodities space for the next winner

I share this free tool from Tradingeconomics.com which is very handy for picking winners and losers among trading commodities. In addition, I present charts of soya bean and copper which investors might want to add to their watchlist.

 

Free tool for commodity winners & losers

With persistence, good fortune and good timing, one can find a winner. This free resource provided by Tradingeconomics.com is in my opinion a very good tool for additional powerup to spot winners in the commodities space. When my eyes ran down the table, the first impression was the number of commodity products especially in the industrial section that are showing excellent year-to-date performance. Price of steel for instance is up 247.22% and coal is up 114.41%.

Screencap from http://www.tradingeconomics.com/commodity/steel

Here at TerraSeeds, we follow a systematic approach with trading. With persistence, good fortune and good timing, we brought forward quite a number of good ideas.

  1. In a principled manner, we posted that gold remained year to year down trend until a new 52-week high above 1307 is printed. Look here, here, here and here for some of my postings on gold price and gold mining stocks early this year. This post ‘Looking at multiple time frame trend analysis with XAUUSD‘ demonstrates how I arrive at trend and how we anticpated gold’s bullish trend.
  2. Coffee’s rise was also spotted. In this post ‘HABBSTS system filtered out Coffee ETF bullish reversal‘, I explain how coffee’s rise was spotted using a Heikin-Ashi Bollinger Band combination on weekly time frame.
  3. My colleague Binni Ong also spotted and wrote about Natural Gas here and here.

After seeing the table of outperformers above, I am now on a personal mission to look for MORE.

 

Soya Bean, Copper next to look at

I want to share the charts of two more commodity products soya bean and copper. I think these two have room to gain. Please take note:

  1. I don’t have a CMS license so I am not a qualified advisor.
  2. I look at ideas in the way that they appeal to me. Each reader is different – it’s highly likely that you will have a different investment motive, horizon, tolerance from me. Any reader who comes across this writing should personalise the information here to his/her own requirement because what is suitable for me may not be suitable for you.
  3. Therefore I am not promoting buy or sell. I am promoting chart reading, sharing my technical analysis know-how. I encourage you to write to me in the comments below so that we can say hello.

 

Soya bean has signs of a potenial bullish reversal

The most important feature in this weekly chart of soya bean is the new 52-week high printed this year. This new high terminates the down trend in place from 2013 t0 2014. Price has fallen back below the former 52-week (2015) at 1058 but should price recover this level, then the chance of a bullish trend is so much more likely. In the mean time, I want to see that soya bean stays supported, to comply with the upward rising channel.

Traders who have not traded soya bean before can do so through a CFD contract. Investors can consider the following ETFs:

  • DIRT - iPath Pure Beta Agriculture ETN
  • WEET – iPath Pure Beta Grains ETN
  • SOYB – Teucrium Soybean Fund

Here’s an extended list of agricultural ETFs.

Soya bean weekly chart July 2011 - present

Soya bean weekly chart July 2011 – present

 

Copper doing long consolidation

Copper is less bullish than soya bean. In fact copper is still in a downtrend because there is no new 52-week high. What’s prominent to look out for in copper is the pretty long consolidation and the fact that it bounced off the 2016 open price of 2.096 just to stay in the green. This means while there is no uptrend, it has the strength to stay sideway for a long term, in fact market sentiment is on the side of the long term investor because copper has managed to stay in the green. There are now just 2 months till year end. It is unlikely to see a 52-week high signal this year but something could show up for in 2017.

Copper ETFs are:

  • JJC – iPath Bloomberg Copper Subindex Total Return ETN
  • CPER – United States Copper Index Fund
  • CUPM – iPath Pure Beta Copper
Copper weekly chart July 2011- present

Copper weekly chart July 2011- present

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Soh Tiong Hum is Director of TerraSeeds Market Technician Pte Ltd. TerraSeeds is a trading educator in Singapore since 2005.   Soh's Twitter account @sohtionghum was ranked #23 out of The Top 70 Twitter Accounts To Follow In 2015 by MahiFX.   Disclaimer notice: "I do not have a financial advisor's license. I am not qualified by any regulator to give financial advice. I do not know you the reader. Your investment means and motive may be different from me. My posts here are based on observations and meant for education. I am not responsible for for any consequence from your actions."
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