Commodities technical analysis 3/07/2017

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 break below 1240 wedge lower line level. Looking from a continuation downside from here with a clear daily close below 1210.



Silver has briefly broken above 18.20 and touched 18.50 level. The instrument is testing 17.70 level for the downside wedge break. Break below is needed for the downside continuation.


Has reached the 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 the downside continuation.



Natural gas is again in the selling zone retesting falling trend line 3.000 level. Break below 2.706 is required for downside extension. Look only for the short trade entries with SL above 3.1000.


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 has reached the 79.70 level. Short trades are preferred here with SL above 80 for a retest of the 77.50 wedge lower line.



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 instrument has broken below the wedge and the downside continuation is in play. SL on short entries above 275 targeting 254 and 240.

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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