With the massive commodity downtrend, it has been hard to find anything in the commodity space in an uptrend.
Here are a few charts I like, and after having 18 of 19 $CRB (Commodity Research Bureau) components below the 40 WMA, that is a bit of a relief.
Gasoline is trying to climb above the 40 WMA. While Heating Oil is not above the 40 WMA, this points to some potential price stability. As the refiners rotate through their shutdown period, this could be volatile. I do like the gasoline moving above $1.40 which is a support /resistance level. I probably won't like it when I see the price at the pump perk up.
Livestock is waking up after calving season. It has clearly moved out of the down trend and some of the companies like Tyson (TSN) and Maple Leaf Foods (MFI.TO) have been pushing higher.
Pilgrim's Pride (PPC) chart is roughly the same shape. I don't like the SCTR falling below 75 and I would probably wait for it to tick back up before entering.
Sugar and coffee are moving above the 40 WMA. Sugar appears rather volatile. Coffee is still within the sideways trend.
I'll be covering off emerging opportunities in the Commodities segment on Thursday's Commodities Countdown Webinar 20160317. Click on the link to register and you will be notified by email as it starts.
Good trading,
Greg Schnell, CMT, MFTA.
