According to the LAWG 647 Model (LAWG) based on the Friday, June 16 close the following commodities reversed trend direction, and one disappointed.
September Aussie Dollar trend turned bullish. A close on 6/23 at or below 5983* (yes you read that right) will turn the Aussie bearish. LAWG also shows that the Aussie became a bit overstretched to the upside which suggests more risk adverse traders wait for a possible corrective dip.
September Canadian Dollar trend turned bullish last Friday. A close on 6/23 at or below 7003* will turn the Canadian bearish.
July Soybean Oil turned bullish last Friday. A close on 6/3 at or below 3004* will turn the July Bean Oil bearish. LAWG also shows that the July Soybean oil is in RED ALERT STATUS.
August Cattle are presently in an uptrend but entering an extremely vulnerable price area and time frame. A close on 6/23 at or below 110.80* will turn the August Cattle market bearish. If it fails to turn bearish on 6/23, a close at or below 112.77 will do the trick on 6/30. If August Cattle fail on 6/30 the critical price becomes 120.05 on Friday, 7/7. There is good news for the bulls. If Cattle do not reverse given how close the prices are to reversal levels chances are very good (but not guaranteed) for a significant rally.
August Feeder Cattle are presently in an uptrend but entering an extremely vulnerable area and time frame. A close on Friday, 6/23 at or below 140.27* will turn the August Feeder Cattle market bearish. If it fails to turn bearish on 6/ 23, a close at or below 142.25 will do the trick on June 30. If August Cattle fail on 6/30 the critical price becomes 154.70 on Friday, 7/7. There is good news for the bulls. If Feeder Cattle do not reverse given how close the prices are to reversal levels chances are very good (but not guaranteed) for a significant rally.
Soybeans failed to give bulls a reason to smile. The LAWG Model told us that for July Soybeans to turn bullish on 6/16 it needed a close at or above 9.53 ¼ which was only 11 ¾ cents higher than 6/9 close. After last Fridays close the reversal value is now at or above 9.66 ¼*, or 27 ¼ cents higher for the week. Bulls never like to see the market trying to run away from a bullish reversal.
*The difference between where a commodity is trading and the price needed to reverse the present trend is an indicator of the underlying strength of the trend.
The risk of trading futures and options can be substantial. Each investor must consider whether this is a suitable investment. Past performance is not indicative of future results.