Some Predictions For Commodities In 2007

Here it is the start of a new year and it seems like everyone is making financial predictions. So, I figured that I might as well get into the act and make some predictions of my own about where some of the commodities that I watch will be headed in 2007. Here goes.

Crude Oil: Crude Oil certainly had a volatile ride in 2006. Of late, Crude Oil has been going down dramatically. In the near future, I see Crude Oil going down to around $45 per barrel which is around the 50% level on the charts. I think Crude Oil will gradually rebound from this level in the middle to latter part of the year. Also, by that time we will probably see a resurgence of the factors that make Crude Oil rise. For example, a devestating hurricane in late summer or fall or increased tensions in the Middle East are quite possible.

Orange Juice: OJ seems to be one of those commodities that’s difficult to predict. OJ hit multiyear highs in 2006 and has stayed high without yet making a correction. Over the past couple of weeks, OJ has formed a top, but it still hasn’t made a decisive move down. I think OJ will eventually make some correction or move down and then will again test its highs of 2006 as the 2007 hurricane season gets underway.

Corn: Corn is another commodity which had a major rise in 2006 and yet really hasn’t had a correction. Corn had formed a 1-2-3 top formation in the past few weeks and looked like it was ready to make a major move to the downside. But, corn stuck to its nature of being unpredictable and in the past two days has made strong up moves. As of this writing, corn is up 16.2 cents for the day. So, who knows? Corn may very well move up, break past the previous highs and continue on to new highs. In fact, I think this scenario could be quite likely as the fundamental news about corn seems to be bullish. Corn could be a good profit opportunity in 2007.

The Dow Jones Industrial Average (DJIA): Ah. The stock market. Basically, I think the economy is good enough that the DJIA will go to new highs in 2007, possibly enough to propel the Dow Jones average to the 14000 to 15000 area.

The only problem is that I don’t know when in 2007 this will occur, whether it will be a continuous rise throughout the year or maybe make the rise later in the year. Of course, there is always a lot of that can happen that can make the stock market pretty jittery.

Well, that’s enough predictions for now. To see my completed and open trades please go to www.mylearn2trade.com.