Commodities technical analysis 3/02/2017

Commodities technical analysis XAUUSD, XAGUSD, OIL, NAT GAS, WHEAT, COTTON, COPPER

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The instrument is in the wedge below 1258 level 50% Fibo retracement.  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 have a bounce to 1260 and a rejection from this level. Break below 1240 is required for downside reversal and a wedge break.


Silver has reached 18.50 level and has broken above 200 SMA 18.20 level. It is still in the wedge and a daily close below 18.20 is required for the bearish reversal. Above 18.50 we could see a 19 retest. Staying aside for now.


Has reached strong upside resistance 52-54 zone again and we expect rejection here for a sideways price action between 49-53 in the coming days and weeks. SL on shorts here should be above 55. No change in view.  We need to see the daily close below 51 for that.


Natural gas 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.  The strong support is 3.000-3.100 zone and the daily close below 2.705 is required for the next 2.395 target. No change in view.



We prefer short trades for now. Rejection from 450 level and a falling trend line is confirming near-term bearish view. The daily close below 430 is needed for the flag downside breakout. Retesting the 200 SMA 462 level and a hold from this zone is required for the bearish reversal again and a retest of 430.



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 testing 77.50 level. Reaction from this level is important. Staying aside for now.


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. Staying aside.


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.

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