Grains & Softs
- Thread starter schizo
- Start date
So far, the two markets have been going pretty much the way I anticipated. Wheat and other grains are retracing and sugar has forced the shorts scrambling to cover. Here's the plan for the next few weeks.
* Sugar seems to be putting in a H&S pattern. If we reverse here, we'll be going straight down to 27.
* Wheat has retested its previous low today. If we break below that in the coming days, you can safely say "buh-bye!"
* What is currently drawing my attention is the interaction between coffee and cocoa. Coffee is relentlessly going higher while cocoa is displaying weakness. My projection is that coffee will follow the lead of cocoa in short order and turn south. The obvious place for the reversal to occur is at 300. Keep your eyes on that number.
Quote from Shagi:
Good calls there Schizo
Thanks. There are just so many out there to choose from, it's becoming damn hectic around here. Now, did you see the drop in coffee right after I made the call? It didn't go up to 300 as I anticipated, but did she drop. However, I'm not expecting that the floor is completely removed at this time. 260 level should be a good point to unload your shorts. We might reverse and retest the high again. Same for cocoa. We should stabilize near 3200 where short covering should take place.
As for sugar, it's already put in the right shoulder and dropping as this noob stated earlier. This sucker should be sliding for at least another week. If you know your technical analysis, you should also know how to calculate the target price for H&S.
Jumping over to the Grains bandwagon, I'm very excited to have participated in the current slide. Even corn, which has been the most resilient of the grains, has finally succumbed to the selling pressure. However, with the Japanese earthquake and unrest in the Middle East, I think it's ripe time to take money off the table.
ZW and other grains seem to be putting in a base here. As mentioned above, I'm of the opinion that macroeconomic perspective surrounding the current global crises from Middle East to Japan indicates that food prices can only go up in the near term. Hence, I'm bullish going forward.
Sugar again plunged today towards the neckline. I believe the H&S pattern will be stamped once we cross below that line. The target remains at 2311.
Cocoa and Coffee remain weak. Although coffee made a intraday U-turn, which is always a worrisome sign, I remain bearish. I think there should be at least 1 or 2 more days of drop. As alluded to earlier, the targets for cocoa and coffee are 3200 and 260, respectively.
Sugar again plunged today towards the neckline. I believe the H&S pattern will be stamped once we cross below that line. The target remains at 2311.
Cocoa and Coffee remain weak. Although coffee made a intraday U-turn, which is always a worrisome sign, I remain bearish. I think there should be at least 1 or 2 more days of drop. As alluded to earlier, the targets for cocoa and coffee are 3200 and 260, respectively.
Rubber!