Technical analysis involves the use of historical stock prices charts and certain technical indicators like moving averages, trend lines, and oscillators. These help predict the future course of index and commodity futures prices. Given the high volatility of commodity stocks, several profitable moves can be potentially identified within the trading day itself.

A huge advantage of the technical analysis of commodity charts is that the trend of underlying commodity stocks can be easily determined. By studying a daily chart of the underlying commodity, one can easily conclude whether the price trend is up, down, or sideways.

Another advantage of technical analysis lies in the fact that these charts have distinct patterns like heads, shoulders, triangles, rounding tops, and bottoms, which can present profitable trading opportunities when recognized. Charting can be accomplished quickly, and is relatively inexpensive. Finally, commodity charts provide a wealth of information ranging from momentum and volatility, as well as support and resistance.

Barchart.com offers unique stock screeners where current prices can be screened on the basis of unique, technical parameters. More than 1000 contracts traded on major exchanges such as the CBOT, NYMEX, COMEX, CME, and more. These are comprehensively analyzed and set ups are identified based on the bullish or bearish trend exhibited at a given time. The most promising technical leads are compiled and made available to Barchart.com users on a daily basis.

Additionally, Barchart.com offers its users a wealth of free information about the technical analysis of charts. Several articles are available for download that provide tips and pointers about the technical analysis of commodity futures. The articles available focus on areas such as using candlestick patterns when identifying profitable trades, identifying support and resistance levels, and developing a sense of reversal and continuation patterns. They also focus on using Elliott wave analysis to spot profitable trade setups involving commodity charts.

Several online articles are available free to Barchart members covering diverse topics on technical analysis of stock prices. These include the use of technical oscillators like the relative strength indicator (RSI), stochastics, moving average crossover divergence (MACD), and Bollinger bands. Other online articles include information about Gann analysis, trend lines, trading patterns, historical volatility, point and figure charts, as well as using Fibonacci patterns in trading commodity futures. Additionally, advice and recommendations are available from professional traders about today’s most profitable trades. Visit www.barchart.com to become a member today.

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