Common Sense Nightly Blip Report For Friday, June 13th, 2003  | Printable Version | click for more information about Blips |
Cotton: Cotton prices are bumping up against resistance on the weekly and monthly charts and are looking very bought on the monthly charts. At this resistance point, prices have formed a top blip on the daily charts.  A confirmation of this top by penetrating today's low would imply at least a retracement in the trend in prices. Below the current prices we have gap from 3 days ago, which may need to be filled.  The top of this gap coincides with the 38% retracement level of the recent uptrend in prices and completely filling the gap can be done with less than a 50% retracement in prices. With general wekaness accross the board in the Ag markets, this blip looks like a good opportunity to get short this market if it confirms.

Gold: Gold prices are testing an uptrend line in existance since the April lows.  This line coincides with a 38% retracement of the previous uptrend, making the bottom blip forming in this market very interesting as talk returns of the Indian Wedding season and turmoil in the financial markets. Momentum appears to have hooked upward on this blip pattern and the market is flirting with over sold readings on the Slow Stochastics indicator. A break-out above the toip of this bottom blip implies at least a 50% retracement of the current trend, if not new highs, making this bottom blip look like a good place to enter the Gold bull trend on a correction. Remember the old trading caveat... "The trend is your friend!"
The above report is intended as a beginning basis for trade analysis.  Traders should do their own homework by reviewing the long term charts, as well as the potential risk to reward set-ups of any trade before initiating a position in the futures market.  For more information about trading in a disciplined fashion, call your Common Sense Capital broker at 1-877-857-0948.
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