Commodities technical analysis XAUUSD, XAGUSD, OIL, NAT GAS, WHEAT, COTTON, COPPER
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XAUUSD-GOLD
Looking at commodities technical analysis we can see that there is some upside momentum catching up after some retraces earlier. Gold rejected again from upper wedge line and is again at the 1275-1310 zone. Breaking below 200 SMA has made Gold vulnerable for a possible move to hard support 1220-1250 zone and is hovering near 38.2% retracement Dec-July 2016 swing high. Above 1290 long trades are valid with a SL below 1260. Still we need a break above 1310 for triggering of our seasonal bullish Gold position.
XAGUSD-SILVER
Silver is back to the range and is sitting on a support zone 17.30-17.60. Hold here is important for upside continuation. Silver is turning higher and now only resistance is 18.50-19 zone. Support zone for the upside is 17.60-18. SL on longs should be below 17.50.
OIL
Oil has reached well known horizontal support 43-43.60. Bounce from here is underway and we could see, from here, a test of broken Pitchfork channel 46.30 level at least.
NATURAL GAS
Natural gas broke the bullish flag and continuation upside is expected from here. SL on longs should be below 2.667 and we expect a rise to 3.300. No change in view we are seeing a retest of broken flag.
WHEAT
Waiting for a directional move from this consolidation zone. Recent upside move could see extended continuation to 430. Stop losses on any initiated longs should be below 395. Important 417 level should be broken for an upside continuation.
COTTON
Has retraced recent swing higher and is bouncing from a 50% of Fibo retracement. Watching 71.84 for a clear directional break. No change in view and SL on any initiated longs should be below 67.70. Triangle is formed and support is 67.50.
COPPER
Long term view published HERE. Major triangle break and we see this as long trading opportunity SL should be below 214 targeting 250 an higher.
We expect to see another leg of USD weakness in the following days regarding to our view that FED will stay aside from interest rate hike before presidental elections. So we think that both Novemberand December possibilities of an interest rate hike will be off table until we have a new economic policy from Government officials in US. This could affect commodities market too as well as other financial instruments.
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.