for Commodities


chartpatterns.com Electronic Hotline -- the weekly source for investors looking to time the market with chart patterns and technical analysis for the commodities markets.


The e-hotline goes out every Sunday evening so you'll know just what to do come Monday and what to look for the rest of the week.

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We identify high probability chart patterns every week with analysis on anywhere from 8 -10 or more markets (between 6 - 10 pages) every issue. And not only do we identify what's new, but we also stay with you while the pattern's in play.

Below are some thumbnails of the pages. Scroll down further to see the e-mailed issue (Word.doc) and what you'll see. 



      


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chartpatterns.com Electronic Hotline / Vol. 5, Number 3
CHARTS and ANALYSIS
(Sunday, May 21, 2000)

PORK BELLIES
Nearest Future Chart (May '00) Daily

The pork bellies (new this week), after a retreat from recent highs, has paused and formed a small descending triangle in a new downtrend. Bearish. Notice the Relative Strength Index (RSI) has also formed a bearish pattern (small rising wedge).

BRIDGE / COMMODITY RESEARCH BUREAU (CRB) INDEX
Nearest Future Chart (June '00) Daily

The Bridge / CRB Index broke out of a nice ascending triangle in an uptrend a few weeks ago. And just a couple of weeks ago, it broke out of a bull pennant. Watch this market. It's got a lot of potential. But watch it also because it's a great barometer for what commodity prices are doing in general. (It has long been used as a general inflationary indicator.) (To learn more about the CRB Index, just e-mail us at: CRBIndex@chartpatterns.com.)

 

NASDAQ 100
Nearest Future Chart (June '00) Daily

The Nasdaq 100, after collapsing through long term trendline support about a month or so ago, recently broke out of a bear flag in a downtrend. As we said the other week, a move through the bottom of the pattern would suggest even lower prices. Pay attention. The big drop that was seen in late March and early April should not have come as a surprise. The move to the downside was foreshadowed in so many ways. Just take a look. Can you see the warning signs?

 

COFFEE
(July '00) Daily

Coffee continues to be one to watch. No real pattern, but bullish divergence and a strong leading Relative Strength Index (RSI) suggests a waning bearishness. A move through the green line on the price chart should spark some bullish ideas.

 

JAPANESE YEN
Nearest Future Chart (June ’00) Daily

A head and shoulders reversal pattern set the yen's dump in motion. A falling wedge took some of the immediate bearishness off the market. It appears to be headed for a typical return move to the underside of the broken neckline. This should contain any upside advance. If the neckline is violated, near term bearishness should be put on hold and buyers may try to assert themselves. The RSI looks rather strong.

 

ORANGE JUICE
(July '00) Daily

Orange juice looks interesting and still looks to be forming a base in my opinion. There appears to be a big rectangular trading range that continues to confine the market (sort of). A move through the top of the pattern though, should get this thing going, while a move with impunity through the bottom, should send it even lower. (Opinions notwithstanding, do what the pattern says.) Again, a break through the bottom is bearish, while a break through the top is bullish!

 

CANADIAN DOLLAR
Nearest Future Chart (June '00) Daily

The Canadian dollar after breaking through long term trendline support in mid April, broke out of a bear flag pattern last week. (More on trendlines and support and resistance.) Bearish. (Take a look at the volume readings on the breakouts.) Good confirmation. Take a look at the weekly chart below.

CANADIAN DOLLAR / Nearest Future Chart (June '00) Weekly

This view of the Canadian dollar (weekly nearest future chart / June '00) shows the potential of a downmove. Big rising wedge in a previous longer term downtrend. Here you can see a longer term view of the broken support and the typical return move to the underside of the broken trendline and the subsequent turn-away.

 

SOYBEANS
(July '00) Daily

After a nice bull flag breakout in an uptrend a few weeks ago, followed by a typical return move to the top of the pattern, the market broke down at the beginning of the week. Price and strength divergence are apparent. And the RSI in and of itself looks a bit concerning. Immediate bullishness seems to have been put off. But don't forget the big picture. See the weekly chart below.

 

SOYBEANS / Nearest Future Chart (July '00) Weekly

Here's a look at the weekly chart. The 'big picture' sees an inverted head and shoulders breakout (followed by a bullish pennant breakout). The size of the pattern suggests the bullishness isn't yet over.

FEEDER CATTLE
(May '00) Daily

Feeder cattle appeared ready to move higher a few weeks ago after a bull flag breakout. However, the market quickly failed (the green circle shows the failure point). The other week we mentioned that a move through the hashed red line should send prices moving lower.

 

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The information contained here was gathered from sources deemed reliable, however, no claim is made as to its accuracy or content. This does not contain specific recommendations to buy or sell at particular prices or times, nor should any of the examples presented be deemed as such. There is a risk of loss in trading futures and futures options and you should carefully consider your financial position before making any trades. The reference to statistical probabilities does not pertain to profitability, but rather to the direction of the market. The size and the duration of the markets move, as well as entry and exit prices ultimately determines success or failure in a trade and is in no way represented in these statistics. Furthermore, no representation is being made that any of the examples shown resulted in actual trades or will result in actual trades. This is not intended to be a complete study of chart patterns or technical analysis and should not be deemed as such.

Futures and options trading carries significant risk and you can lose some, all or even more than your investment.

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