The energy sector within the S&P has just broken out above previous resistance, and the technical setup suggests that it now provides a decent trading opportunity with a defined exit point should the trade fail to work out.
Since reaching a peak of 1.855 in early October 2012 the price of coffee has fallen more than 23%. Last week however, coffee broke out of a multi-month Falling Wedge trading pattern which could signal a reversal of this downtrend and could provide a profitable trade.
Last week copper broke down out of a multi-month consolidation pattern providing an excellent potential short trade. However, the industrial metal’s bearish move may also signal a slowdown in the global economy.
Having reached a multi-year high of $3.09 per pound in May 2011 the price of coffee has been in a steady decline. Over the past few months however, the price of coffee has begun to form a potentially bullish chart pattern that could signal that a major reversal lies ahead.
In this month’s Diary of a Trend Following Trader (DOATFT) I close out my soybean trade at a small profit, go long oil and palladium (which have broken out to new highs), and go short wheat, corn, gold, silver, platinum, heating oil and natural gas.
Gold producer, Gold Resource Corporation, jumped 7.5% yesterday on the back of decent Q3 results providing an excellent one day trade. The company also provided an update for investors and it remains in our long-term portfolio.
In order for Russia or China to become the next world superpower, they must first strip the US dollar of its dominant role in world trade, especially when it comes to Middle Eastern oil. And that’s exactly what they’re trying to do.