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Terranova's Commodities Corner

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Considering gold is currently near seven-month highs, is the trade over?

Gold

"The charts are looking a bit stressed out after the relentless rally over the last couple of sessions," says Pradeep Unni, senior analyst at Richcomm Global Services.

Does that mean you should forget another leg higher? Not at all. "Bullish momentum is still in place," says Unni, "(In fact) a slight reversal would be necessary to provide the steam to head higher."

FM Trader Joe Terranova concurs. It's a crowded trade, he says on CNBC’s Closing Bell, but it looks like gold wants to go take out last year’s high of $1033.

Copper

And if you’re looking for another metals play, Terranova suggest looking at copper . “I like copper as an industrial economic play and we’re beginning to see numbers out of China that suggest a little rise in demand.”

Oil

"I no longer think we’re going to see a rapid rise in energy prices that will take oil above $50," Terranova says. "It looks like the long-dated contracts (which had been trading higher than short dated contracts ) are now selling off to meet the short-dated contracts."

In other words, Terranova thinks at best oil will likely trade sideways in a range.



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Trader disclosure: On Feb. 18th, 2008, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders; Seymour Owns (BAC), (EEM), (EEM), (PBR), (XOM), (FXI); Seymour's Firm Owns (VIP); Terranova Owns (FCX), (XBI), (AMGN), (KCE), (DIS); Terranova Owns (IBM) & (IBM) Call Spread; Terranova Owns (AMGN) Puts; Adami Owns (AGU), (BTU), (C), (GS), (INTC), (MSFT), (NUE); Najarian Owns (CHK) Put Spread, Najarian Owns (CBS) Calls, Najarian Owns (EEM) Call Spread, Najarian Owns (FCX) & (FCX) Calls, Najarian Owns (GS) Calls, Najarian Owns (GDX) Call Spread, Najarian Owns (GLD) Call Spread, Najarian Owns (HPQ) Spread, Najarian Owns (MSFT) & (MSFT) Short Calls, Najarian Owns (MS) & (MS) Short Calls, Najarian Owns (MOS) Call Spread, Najarian Owns (STI) Call Spread, Najarian Owns (WFC) & (WFC) Calls

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