Uncorrelated Trades In These Two Commodities

JC Parets
March 18, 2020

While we wait for the breadth and momentum divergences to develop in the equity markets, we're taking advantage of other markets that offer uncorrelated trade opportunities.

Today, we're looking at Jeera and Crude Palm Oil on the long side.

Let's start with Jeera, which is back at its 2016 lows at 13,000 as momentum diverges positively. After a nearly 30% decline since last July, this looks like a logical level for prices to find their footing and begin some mean reversion higher. We think it's worth a shot on the long side against 13,000, with upside targets near 16,000 and 17,750.

Click on chart to enlarge view. 

Crude Palm Oil has retraced slightly more than 61.8% of its July-January rally and is now attempting to gain its footing. A weekly close above 625 would confirm a successful breakout retest and signal further upside towards 785 in the coming weeks and months.

Patience remains best in the equity markets and the reward/risk potential in these two uncorrelated assets makes these great trades in the near-term as we wait for more opportunities to develop.

If you enjoyed this post and want access to all of our premium research, start a 30-day risk-free trial. Or sign up for our "Free Chart of the Week" to receive more free research like this.

Thanks for reading and let us know if you have any questions!

Allstarcharts Team

Filed Under