It was another volatile week in futures and commodities with rising inflation and slowing growth fueled by a weaker September nonfarm payroll number. The leaders this week in the commodity complex were Lumber (+14%), Palladium (+8%), Oats (+7%), Cotton (+6%), and Platinum (+5%). Crude Oil is the commodity all the talking heads are chattering about, with prices reaching the highest level since November 2019. If you have never traded futures or commodities, I just completed a new educational guide that answers all your questions on how to transfer your current investing skills into trading "real assets," such as the 10 oz Gold futures contract. You can request yours here: Trade Metals, Transition your Experience Book.
After releasing the payroll data, Gold futures attempted to break out from the recent downtrend, and surprisingly, yields stopped it right in its tracks. The big banks are pushing Yields as hard as they can and but with the 10-Year right at 1.61%, how much higher can they go without the data to support it?
Daily Gold Chart:
While analyzing the charts, one can see that Gold has three main areas of resistance, beginning with the downward trendline from the all-time highs, the 50-day moving average, and the congestion area from 1820-1835. If you would like to learn more about technical analysis, we have updated the guide to provide you with all the steps to create an actionable plan used as a foundation for entering and exiting the market. You can request yours here: 5-Step Technical Analysis Guide to Precious Metals.
Daily Platinum Chart:
Platinum has recaptured $1,000 an ounce, broken its downward trend, and most likely has made its seasonal low. I had taken the daily chart and added the seasonal tendency for the past ten years. This is the part of the article where I tell you to remember that past performance is not indicative of future results. We are going to have to monitor how it plays out and If you would like to know more about our strategies in the futures and commodities markets, please register for a Free two-week trial of our research by clicking on the link here: The Blue Line Express Two-Week Free Trial Sign up.
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Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.