Tuesday has three markets with potential reversal dates that could set up a swing trading opportunity.

June Lean Hogs – This market has been lower after peaking on the April 4, 2011 reversal date. The market is currently trading just above the downward sloping median line. This line typically provides support where a market can reverse. Since Tuesday is a projected reversal date, this could be a good set up for a corrective rebound into the 20-day EMA or upper parallel line. I will be monitoring this market today.

June Natural gas – We just closed a very good long position in the June N-gas when it reached the ascending median line a day before the projected reversal date. The market has had an extended rally into this target zone, therefore I look for a possible short-term corrective pullback into the next reversal date due on May 5, 2011. This price action could set up a next swing trading opportunity.

June British pound – The market gapped lower at the open and continues to trade lower. The lower trade, on the projected reversal date, could set up a new buying opportunity. But, it is to early and I need to see more price action before making a recommendation.

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