Futures technical analysis

Find below top down futures technical analysis exclusively using supply and demand imbalances together with price action.
Bear in mind that a top down technical analysis is needed to make a trading decision, a single timeframe is not enough to place a trade. There are not signals, they are meant to point out strong imbalances usually in a clear trending market.

Future analysis today

22nd April 2020

Soybean futures ZS analysis

CBOT Soybean futures (ticker symbol ZS) give you an easy, liquid tool to seek to profit from or hedge against price movements for one of the world’s most widely grown crops. Currently Soybean (CBOT: ZS) futures is in a downtrend with new weekly supply level around 890 in control, you can see Soybean weekly supply […]
17th April 2020

10 Year T Note Futures long scenario

We do not need to pay attention to any fundamental analysis, I just wanted to share with you something that I recently read in Barchart. 10-year T-note futures prices are moving higher after the International Monetary Fund (IMF) predicted the “Great Lockdown” will push the global economy this year into its deepest recession since the […]
14th April 2020

GOLD cash XAUUSD breaking higher

Gold XAUUSD price is widely followed in financial markets around the world. Gold was the basis of economic capitalism for hundreds of years until the repeal of the Gold standard, which led to the expansion of a flat currency system in which paper money doesn’t have an implied backing with any physical form of monetization. […]
12th April 2020

Light Crude Oil cheap prices forecast

As explained in a previous Light Crude Oil (CL) analysis, as major economies go into lockdown, oil demand continues to fall off a cliff. A few weeks ago, the U.S. was doing very little against the corona virus propagations, but things have changed dramatically. In just a couple of weeks, there has been a proliferation […]
8th April 2020

Brent Crude Oil commodity price analysis today

Brent Crude oil is a major benchmark price for purchases of oil worldwide. While Brent Crude oil is sourced from the North Sea the oil production coming from Europe, Africa and the Middle East flowing West tends to be priced relative to this oil. The Brent prices displayed in Trading Economics are based on over-the-counter […]
17th March 2020

Brent Crude Oil downtrend scenario

As major economies go into lockdown, oil demand continues to fall off a cliff. A few days ago, the U.S. was doing very little against the corona virus propagations. In just a few days’ time, there has been a proliferation of school cancellations, mass gathering prohibitions and mandatory telework orders, following suit with what has […]

Futures technical analysis is no different from technical analysis for stocks, ETFs and Forex. Technical analysis and price action will help us understand and locate new supply and demand imbalances in a mechanical way.

One need not be a futures expert to realise the significant role that technical analysis plays in these markets – the belief that the key to determining future market moves lies in a market’s historic statistical activity such as price or volume rather than the inherent traits of the underlying commodity itself. Even traders who focus on fundamental factors like seasonal and crop reports together with geopolitical events tend to incorporate some element of technical analysis into their decision-making. Technical analysis is ubiquitous, nowadays it’s almost unthinkable to trade without having done a top down technical analysis of the futures market you intent to trade.

Many industry veterans tend to believe that trading based at least in part on the established statistical movement of some markets can spare a trader from not only the emotional swings of trading with one’s heart instead of one’s head, but the confusion of trying to weed through an often murky fundamental picture as well.

In contrast to a fundamental trader who looks to news and myriad supply and demand data as trading inputs, a technical trader gets information directly from the futures market itself by looking at one picture—a price chart. And, technicians operate on the assumption that futures past price movement can predict the future direction of prices.

Technical analysis for futures markets trading

Technical analysis is as hated and as loved by futures traders trading the futures markets. Those traders trading futures fundamental analysis will be against using technical analysis because they believe everything is about fundamentals. However, there is a big number of traders that use technical analysis and price action to trade the futures market.

Future and commodity market prediction

Many commodities are traded in both spot and futures markets. The spot market is for trading today, whereas the futures market is for future delivery. However, does the futures market really provide us with a crystal ball? The short answer is yes and no. To answer this questions, we must first understand the concepts of forward contracting, hedging and speculation, and eventually how supply and demand plays its important role moving the futures and commodity market.

We can use technical analysis together with supply and demand to trade and predict future moves in the futures and commodity markets. We should not be talking about futures and commodity market prediction, it sounds as if we were talking about astrology. However using a supply and demand trading strategy will help us make a market prediction with a high degree of accuracy.

The futures market trend analysis

The trend is your friend until it ends. Trading the futures market in a clear trend is what will keep us on the right side of the market more often than not. There is no best stock trend analysis, every stock trading strategy will have its own definition of a trend. As supply and demand traders, we will be using the imbalances themselves to assess the stock trend analysis.

Commodity charts with technical indicators

The goal of any commodity trader or investor is to make as much profit as possible trading commodities. To achieve this, traders go long or short on certain commodities, including Gold, Corn, Sugar and Wheat. For day traders, profits are derived from the most liquid commodity markets. Some day traders combine these assets while some focus on single instruments.

Technical indicators are very popular amongst commodity traders, however we do not really need them if we use supply and demand imbalances to place our trades on commodities.

     
 

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