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. No change in view SL on short trades above the 1258 level. We can’t rule out another brief bounce into 1250. The daily close below 1210 would invalidate that.
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 close 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 but we need to see the daily close below 51 for that.
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. The strong support is 3.000-3.100 zone.
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. Rejection from 450 level and a falling trend line is confirming near-term bearish view.
COTTON
Cotton long trades 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. There is an ascending wedge formed (usually bearish) and the daily close below 75.30 is required for the wedge break and the continuation downside. The instrument is in the process of the breaking of 75.30. Look only for short trades with SL above 76.50.
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.