Commodities technical analysis XAUUSD, XAGUSD, OIL, NAT GAS, WHEAT, COTTON, COPPER
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XAUUSD-GOLD
The instrument is in the wedge below 1258 level 50% Fibo retracement. Break below 1210 is required for downside reversal. Look only for short trades for now as long the instrument is below 1270 level.
XAGUSD-SILVER
Silver is rejected from a falling trend line 18.10 level and 200 SMA. Break below 17.50 is required for a complete downside reversal. Short trades should have SL above 18.20. Uptrend reversal and invalidation of the near-term downtrend only on a daily break above 18.15.
OIL
Has reached strong upside resistance 52-54 zone and we expect rejection here for a sideways price action between 45-50 in the coming days and weeks. SL on shorts here should be above 55. No change in view. Recent price action is supporting the scenario of 48-49 zone retest.
NATURAL GAS
Natural has is rejected from a broken wedge line and look only for short trades here for now. Falling trend line and 3.500 level are strong downside support and we got a rejection from this level for downside continuation targeting 3.000. Invalidation of the medium-term downtrend only on a break above 3.700. We have a downside continuation below 3.015 targeting 2.705.
WHEAT
Has broken above 200 SMA 441 level and is testing the long-term falling trend line 450 level. Break above this level could lead to an uptrend reversal. We prefer short trades for now.
COTTON
Cotton longs have reached their first target which is also the strong upside resistance. Longs have played out and reached 100% extension where we could see a pullback. The pullback is on the way and the wedge break below 75.30 is needed for correction into 73-74 zone.
COPPER
Long term view published HERE. Major triangle break and we see this as long trading opportunity SL should be below 214 targeting 280 and higher. Target zone 270-280 has been hit and we could see little hesitation around weekly 200 SMA 277 level. The pair is in the wedge and the break below 263 is required for downside reversal.
Commodities rising with stock indices and we are bullish on most of them except gold, silver, and energies for now.
A commodity market is a physical or virtual marketplace for buying, selling and trading raw or primary products, and there are currently about 50 major commodity markets worldwide that facilitate investment trade in approximately 100 primary commodities.
What are examples of commodities?Commodities are split into two types: hard and soft commodities. Hard commodities are typically natural resources that must be mined or extracted (such as gold, rubber, and oil), whereas soft commodities are agricultural products or livestock (such as corn, wheat, coffee, sugar, soybeans, and pork).
Technical analysis on commodities is just an indication of possible price movement and does not indicate any trade action which could be initiated by investors and members of this site.