Commodities technical analysis XAUUSD, XAGUSD, OIL, NAT GAS, WHEAT, COTTON, COPPER
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XAUUSD-GOLD
Gold is again below 200 SMA 1281 level calling for more weakness. Targets on the downside are 1190 and 1170. Target is being hit and now downside support is 1200. Look for chances of short position here. SL should be above 1220.
XAGUSD-SILVER
Silver is still without a break of 19.12 level of 100 SMA higher. As long as we don’t see this break above this level not entering longs and we could be looking for shorts. Shorts are supported here against 17.67 level. Targets are 16 and 14. We are looking for price action to enter a trend. Instrument has broken below 16.80 and downside extension should continue. SL on shorts above 17.20. No change in view.
OIL
As long we don’t see a break above 46.50 or below 43 we will not take any action because the direction is sideways. Oil reached perfect downside swing support level 61.8% Fibo retracement 49 level. Sideways range 40-49 should continue. Downside is open as long as 48-49 zone holds. SL on shorts should be above 48. Keep in mind OPEC meeting this week and possible volatility, choppy price action.
NATURAL GAS
Natural has reached bottom again and we have to wait for a reaction from 2.550 level. Below this level we could enter shorts. No change in view. Bouncing from 2550 level again and it has reached bottom range highs 3.150. To overcome bottom instrument need a break above 3400.
WHEAT
The instrument has broken below two months wedge 390 level after rejection at 410 level. SL on shorts here should be above 408.
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. Longs to be opened on a clear daily close of 71.80 targeting 78. No change in view.
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 200 SMA (blue line) 277 level.
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.