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Name the new MACD Manual

Traders Helping Traders weekly Support and Resistance ezine

Name the new MACD Manual, and get it free 🙂

Name the new MACD manualThe RSI Manual has been so well received that I’ve taken up the challenge of writing another one for MACD.

MACD is a very popular indicator among all kinds of traders and for good reason. The indicator has a way of “seeing through the clutter” and giving you an indication of where the market is likely to go next.

I’m doing the final proof of the new MACD manual now, but it needs a name. Care to offer your suggestions? Just post your suggestion in the comment box at the bottom of the page. The winning entry will receive a complimentary copy. I promise you won’t be disappointed!

Looking forward to your suggestions.

Enjoy this week’s issue,

Erich
erich@supportandresistance.com

Papertrades

Currencies Market Overview

Australian Dollar

Watch List – Support came into the Australian Dollar market before the weekend, but that’s not a surprise as I’m sure some profit taking was involved. The market is decidedly bearish off last week’s move lower so rather than buy the support I’m going to wait to see what happens during the pullback. If the buyers are unable to muster much of a rally it will make it that much easier to sell.

Canadian Dollar

Watch List – Exact same as the Aussie Dollar. The market made a big decline last week but found support by the weekend. Looking for a pullback for a better entry opportunity.

Energies Market Overview

Natural Gas

The support around 2700 is very important for Natural Gas. Notice that this is where the market bottomed out last November before a very impressive move higher. Natural Gas is also a seasonal commodity and traditionally the spring is when we see Natural Gas prices getting stronger. But I don’t want to get too far ahead of myself. On a long term scale, Natural Gas prices are “average” – not too expensive, not too cheap.

The only thing that is obvious is that the market was in a strong downtrend the week before, only to put in support last week. This type of “double bottom” support often leads to a rally so while I’m going to stay “with trend”, I’ll reserve my entry until the market takes out last week’s lows.

If April Natural Gas opens at or above 2630
SELL 1 April Natural Gas (NG) at 2630 (stop)(day)

If filled: Exit Stop: 2860 (stop)(GTC)
Approximate Risk: $2300
Profit Target: TBA
Degree of Risk: Moderate

Natural Gas Chart

Crude Oil

In spite of all the OPEC agreements aimed at keeping Crude Oil above $50/barrel, the market is struggling to get higher. In fact, Crude has been dismal during the intraday sessions, barely moving at all and definitely not very crude-like. Last week we saw prices once again trade within the very tight trading range that has developed since last Christmas as price continue to bounce between 5200 and 5500. But maybe not for much longer.

Last Thursday saw the market make a good run at support but without breaking through. The buyers shored up support before the weekend but there seem to be some fresh momentum on the side of the bears, enough that I’ll consider selling again this week.

I’m leaving my entry a little further away to avoid a gap as well as a premature fill. I want to make sure there’s some momentum going our way before getting in.

If April Crude Oil opens at or above 5200
SELL 1 April Crude Oil (CL) at 5200 (stop)(day)

If filled: Exit Stop: 5500 (stop)(GTC)
Approximate Risk: $3000
Profit Target: TBA
Degree of Risk: Moderate to HIGH

Financials/Indices Market Overview

Watch List – I’d like to say the Stock Market is losing momentum but I’m beginning to sound like a broken record. Even so I’ll be on the alert for a shorting opportunity, but nothing I’ll commit to for Monday.

Grains Market Overview

Soybean Oil

Bean Oil is at an interesting crossroads. The market rallied hard last week but stopped just before the 3500 resistance. This is old support and should be turning the market lower, but so far it’s been unable. A close above 3500 would clear the way for the buyers and another rejection of 3500 puts the bears in charge, so buying the market early like this does pose a little problem in that I’m making my “best guess” as to which way the market is leaning.

If May Bean Oil opens at or below 3490
BUY 1 May Bean Oil (ZL) at 3490 (stop)(day)

If filled: Exit Stop: 3230 (stop)(GTC)
Approximate Risk: $1560
Profit Target: TBA
Degree of Risk: Moderate to HIGH

Meats Market Overview

Feeder Cattle

Nothing new to report in our Feeder Cattle trade as we continue waiting for the market to come around and head lower. I do believe we are on the right side of the market and that lower prices are likely; however we won’t see substantial gains until we can get, and close below the recent lows. Until then we’ll just keep watching and waiting.

CONTINUATION of Short 1 March Feeder Cattle (GF) at 12300 (February 24)
Exit Stop: 12700 (stop)(GTC)
Approximate Risk: $2000
Profit Target: TBA
Degree of Risk: Moderate

Metals Market Overview

Copper

Copper prices got close to filling our short order but they didn’t get close enough. That’s okay though as it gives me a chance to adjust the trade in favour of the pennant formation that’s been building. I’m still more bearish than bullish at the moment, but if we don’t see a move lower soon I’ll re-consider what’s going on here.

If May Copper opens at or above 26600
SELL 1 May Copper (HG) at 26600 (February 23)

If filled: Exit Stop: 27800 (stop)(GTC)
Approximate Risk: $3000
Profit Target: TBA (limit)(GTC)
Degree of Risk: HIGH

Softs Market Overview

Cocoa

It was nice to see Cocoa bulls push the market a little higher last Friday, especially since I bought Thursday’s high! The big test will be Monday’s session now that we’re back to the resistance at 1970. This price has several hits over the last couple of weeks and is sure to be influential this week as well. Once we’re above it we should see upside momentum build.

CONTINUATION of Long 1 May Cocoa (CC) at 1940 (March 2)
Exit Stop: 1870 (stop)(GTC)
Approximate Risk: $700
Profit Target: TBA
Degree of Risk: Moderate

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