Commodity Marketing

1
Commodity Marketing

• Chapter 3
• Technical Analysis

2
Bar Charts

• Important market information
• Price high, low, close for the day
• Volume number of contracts traded
• Open Interest number of contracts that havent
  been offset
• Analyst records past history, but can use this
  information to help predict

3
Charting Prices
4
Bar Charts
5
Bar Charts

• Volume measure urgency behind price moves
• Open Interest number of contracts at the end of
  each day that are not offset
• rises new money flowing in
• falls money is leaving the market
• Prices Open interest rise trend will probably
  continue
• Prices rise Open Int. falls, uptrend is ending
• Prices, Open Int., Volume fall, trend is about
  to change

6
Market Nicknames

• Bull one who expects prices to rise
• a rising market
• Bear one who expects prices to fall
• a falling market
• Prices Volume Open Int Market
• Rising Rising Rising Bullish
• Rising Falling Falling Bearish
• Falling Rising Rising Bearish
• Falling Falling Falling Bullish

7
Price Trends

• General direction which prices are moving
• Prices move up, down or sideways
• Sideways Trend called a trading range
• Resistance line (upper level) prices turn down
• Support line (lower level) prices turn up

8
Sideways Trend
9
Trends

• Uptrend higher highs, higher lows
• Draw a line under rising bottoms
• Downtrend lower highs, lower lows
• Draw a line under falling tops
• Takes two to define a trend, three to confirm it

10
Uptrend
11
Downtrend