Commodity, Futures, Forex and Everything in Between

Copper, Natural Gas, Heating Oil Comments

YOU MUST ALWAYS BE AWARE THAT THERE IS SIGNIFICANT RISK INVOLVED IN TRADING FUTURES AND/OR OPTIONS ON FUTURES AND ARE NOT SUITABLE FOR ALL INVESTORS.

It is my opinion that many traders think there are only two trends, higher and lower. In my view there is a third and that is sideways. I define a sideways market as a point where supply and demand have reached near equilibrium and the price lacks the ability to break out to the up or downside. Many traders shy away from this type of market, and that in my opinion is a mistake. Just because a market is sideways does not mean there are no trading opportunities. Let us look at the Copper, Natural Gas , and Heating oil.

It is my opinion that Copper has been in a sideways action since late November, Natural Gas since Early January, and Heating Oil Since late November. It has been my experience that most sideways markets have two levels, a secondary trading range or a narrow range, within the primary or wider range. Less risk adverse traders can take a look at trading the primary ranges, while more risk adverse traders can look at trading the narrower ranges.

If you look at March Copper I believe you will see a primary range between 1.4560 and 1.3375, and a secondary range between 1.4430 and 1.37. March Natural Gas in my view would have a Primary range between 6.67 and 6.00, while the secondary would be between 610 and 647. March Heating oil I see as a primary range between 1.410 and 1.20, while the secondary wouold be between 1.3550, and 1.2650.

For more information regarding the trading of a sideways market call me at 1-877-304-1369, or e-mail me at lee@efggrp.com

posted by Lee Gaus @ 12:32 PM