Commodities technical analysis XAUUSD, XAGUSD, OIL, NAT GAS, WHEAT, COTTON, COPPER
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XAUUSD-GOLD
The instrument is retesting the horizontal resistance 1225 level just 10$ below 100 SMA. Watching the price action here for rejection and a possible short entry. Only on a clear daily close above 1233 we could see a test of the key 1269 level. Shots entries should have SL above 1240.
XAGUSD-SILVER
Silver is above 17.50 key medium-term resistance. If it can hold above this level then it could retest key long term level 18.00. Rejection from this 17.50-18 zone would be crucial for downside reversal. Staying aside for now.
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. 3.000 target reached. Look now for chances to short on a pullback to 3.200 or on a daily break below 3.015.
WHEAT
Is forming a flag below 200 SMA 452 level. It needs a break below 400 for downside continuation. Looking only for shorts here for now with SL above 450 targeting 391 and 363. No change in view the instrument is rejected again testing upper side of the flag. The daily break below 409 is required for the flag to be broken for downside continuation.
COTTON
Cotton longs have reached their first target which is also the strong upside resistance. Look for longs as long as 71.80 level holds and move the SL on longs to break even. Longs have played out and reached 100% extension where we could see a pullback. Pullback is on the way and the wedge break 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. We have a rejection from 260-270 zone and copper could be in a 230-260 range. No change in view.
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.