The AMS Market Profile Tool
The Tale of Two Futures
By: The Wizard
To say the least, Copper and Natural Gas have been very good to me over the last couple weeks. Additionally, from my perspective, it’s slim pickings out there when it comes to what we look for each and every weekend. With that in mind, let’s take a look at Soybeans and Natural Gas this week. The former stuck in a holding pattern, the latter getting ready to soar.
ZS – Weekly
Soybeans futures are consolidating after a rather rapid upside surge as of late despite the fact that the Dollar has firmed up. China is a major buyer giving support but that’s not the reason this particular chart was shown. Remember, this is a weekly chart taking us back over three years. We are in never never land (little to no volume between 1,000 and 1,100), in other words ‘beans’ seeking to go higher and become “teeny beans” hasn’t formed a strong enough base to launch from. We think that is going to change given the strong support at and below this level, a higher VWAP on the histogram side of things and a prior rapid decline to these levels albeit three years ago. We are buyers on dips.
NG – Weekly
What can I say, it get colder in the winter. El Nina has reared her head as well which means heavier snow than normal in the most populated areas as well as colder blasts coming down from Canada. Natural Gas hit major new lows over the summer. When these types of patterns have occurred in the past similarly strong upsides have followed. We’ve already taken Natural gas for a 20%+ ride and are looking for much more, perhaps as high as $4.00 to $4.50. Grant it, would be nice to see Germany and other European and Asian nations do a little more business dumping their Russian counterparts but this has been what the choir has heard for years; who knows maybe that will come true this year but don’t count on it unless COVID-19 disappears around the world and that is highly unlikely.
As you can see I do most of my technical work over the weekend. That is how I use Market Profile. Since most of you are day-traders, I suggest you keep an eye out for the Zone Decoder charts. Niels has been posting them live and we appreciate the interest and feedback. We are partners here at AMS Trading Group and are in the final stages of building our own platform. Have a suggestion let us know, we listen especially if you think it will make you and others better traders.
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