Base Metals having a little rally

[Bopperz]

Whilst we have all been looking at the major index's, looks like Al and Zn are having a little rally.

 

[dmedin]

Sign of China coming back to life?

[Guest Penguin1]

You never know when the bottom or top is in.  Otherwise markets would be easy to trade.

[Mav2018]

👍

[Bopperz]

Well that fizzled out! Quite happy with my chart drawing skills though! 😁

Edited March 13, 2020 by Bopperz

[Bopperz]

On 14/03/2020 at 08:57, TrendFollower said:

rally but on the downside.

Quote of the day! 🤪

[Bopperz]

I have only made one commodity trade this month. LDN cocoa, and that didnt work out for me. Keeping an eye on base metals and coffee too.

I am also looking at Cotton, but it needs to bottom out and turn before I will enter the trade.

[Bopperz]

1 minute ago, TrendFollower said:

@Bopperz,

Are you a long only trader? Do you short commodities? Just look at Silver!

Silver is in freefall!

I don't trade precious metals as I class them as an FX asset class. Also, many of the opportunities/trades that I have seen in banks aren't available to the retail trader. So I stay out of it.

[Bopperz]

@TrendFollower

I have been looking at the Silver which, as you pointed out, is currently trending downwards.

One question - what methods do you use to identify a pull back? I would like to use one as an entry.

I trade ranges, so I normally use support/resistance levels to identify turning points, but this is so far down the chart, its not going to work!

Thanks in advance

James.

[Bopperz]

Also, to clarify my thinking....

NYK Cotton looks like its about to breakout to the downside. So there are two scenarios:

1) Fakeout, the most common. Prices will hit a new low, hit a bunch of sell orders, before a quick reversal back into range.

2) Sustained down move. 

If its option 2, I will wait for a pull back to the ~5670 (ish) and enter a short.

 

[Bopperz]

Nyk Cotton has broken through, now I have to be patient and wait.