Commodities trading overview XAUUSD, XAGUSD, COPPER, OIL
After the breakout below the triangle and channel 1950, XAUUSD is reversing higher. It is breaking above the falling trend line 1920 and by this calling for a possible retrace to 2000. A break and a follow-through below 1900 are required for the upside extension invalidation. We have to say that this is a key positioning now for the last quarter.
XAGUSD is bouncing off the strong support 23.20 and a bounce if sustained could lead to a 26.40 test of the upside resistance. Invalidation and reversal will come on a break below 23.22 and will give us perfect short trade. At this point, long trade entries with the stop loss below 23.5 are recommended.
Copper, as we can see on the weekly chart after the false rising wedge breakout is retesting again the long-term falling trend line 3.10. A break and a follow-through above 3.11 are required for the upside extension and the long trade entries. A rejection here will mean that the consolidation at this key long-term resistance is still not over and we should watch for the 2.95 level on the downside.
Oil is still holding above the important 36.90 downside resistance. If the applied Elliott wave count is correct we are in the 4th wave of the 5 waves swing down and this is valid as long as the Oil is below 43.80. You should take trading action only in the case of a break of these key levels mentioned.
We have used the combination of the top-down trading analysis to get these key levels explained in the charts.
