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5 Technical Setups to Trade in the Commodities

Stock quotes in this article: GLD, USO, DBB, DBA, SLV 

BALTIMORE (Stockpickr) -- It's been a tough year for stocks. As I write, the S&P 500 and the Dow are barely breaking even in 2011 with just three trading sessions to go for the year. It should come as no surprise, then, that investors are paying more attention to commodities in this market.

More and more, retail investors are realizing that buying "the stock market" isn't their only option to grow a portfolio. With asset classes ranging from fixed income and money markets to real estate and commodities, there are many alternatives to stocks out there that can offer equity-like returns with limited correlations to equity indices. Gold and oil provided one of the most salient examples of that fact back in 2007 when both commodities rallied dramatically as the floor was just starting to fall out from stocks.

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With the growing popularity of exchange traded funds, it's easier than ever to get exposure to scores of different commodity markets. With that in mind, we'll take a look at promising tech setups forming in the most significant commodity markets right now.

For the unfamiliar, technical analysis is a way for investors to quantify qualitative factors, such as investor psychology, based on a stock's price action and trends. Once the domain of cloistered trading teams on Wall Street, technicals can help top traders make consistently profitable trades and can aid fundamental investors in better planning their stock execution.

With that, here's a look at five commodity trading setups that could deliver breakout gains to your portfolio this week.

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