CommodityTrends Weekly Newsletter

Nov Rough Rice broke out of its triangle in strong fashion on August 21, creating a potential long setup—especially following the retest of the triangle on August 25. Price broke to a new high on Oct. 1 and is now trading at the monthly chart 50% level at 16.907.

If you’re paper trading this move, consider trailing your stop to just below the Oct. 06 low to help protect the position while still giving the trade some room to develop.

Dec Soybean Meal made a #1 top point the high at 376.9 (on September 24). The #2 point is the low at 344.20 (made on Oct. 05). The #3 point is the high at 368.20 (made on Oct. 08). The pattern is now in force. Be sure to check my Daily Trading video for details of exactly how I'll approach this market. You can find more information by clicking here. 

Dec 10-Year T-Note made a contract low on October 1 at 103-285. Price is still consolidating near the lows of the Monthly chart support zone. I'm still watching for a possible trading opportunity.

Mar Sugar #11 made a new contract high at 21.24 (on Oct. 07). I'm still watching for a trading opportunity.

Previously I featured Maxlinear Inc (MXL) in this letter. Price triggered an entry signal on September 25. Just above the market was a gold weekly chart wick zone, an area of liquidity that I felt price might be drawn toward if the stock continued to rally. In particular, I was watching the midpoint of that zone, near 113.78, as a potential upside objective.

As I've mentioned before, there are no guarantees that price will reach these levels. This is simply an observation based on the technical chart.

Interestingly, price rallied close to that level this week before reversing course. Traders who trailed their stops higher, perhaps just below the gold weekly chart support line, had an opportunity to protect some of their gains. Those who didn't adjust their stops have now watched price retreat back toward the original entry level.

This is a good reminder of why trade management is just as important as finding a good entry. When a market moves in our anticipated direction, we need to have a plan for protecting our position if things turn around.

After all, there's an old saying that fits trading particularly well: If you fail to plan, you're essentially planning to fail.