Commodities technical analysis XAUUSD, XAGUSD, OIL, NAT GAS, WHEAT, COTTON, COPPER
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XAUUSD-GOLD
Look only for short trades for now as long the instrument is below 1270 level. SL on short trades above the 1275 level. There is a retest of the falling trend line. We need to see a daily close below 1240 level for downside continuation. Only the daily close above 1275 will invalidate the downside scenario and could lead to a complete upside long-term downtrend reversal.
XAGUSD-SILVER
Silver is testing the long-term falling trend line 18-18.20 zone and 200 SMA. The instrument has been rejected from the 18.20-18.50 zone again and the daily close below 17.50 will open the downside and the retest of 16.50.
OIL
The instrument has broken above the strong 51-52.500 zone and is testing the 53 level. Expecting a rejection from this level for a new leg lower. Look only for short trades on a daily close below 52 level.
NATURAL GAS
Natural gas is again retesting falling trend line 3.100-3.200 selling zone and is getting rejected from it. Look now only for the short trade entries with SL above 3.4000. No change in view the daily close below 3.200 wedge support line is required for the retest of 3.000.
WHEAT
We prefer short trades for now. Rejection from 450 level and a falling trend line are confirming near-term bearish view. We have a daily close below 442 level also a 100 SMA and we could see a retest of 409 level. SL on short entries above 450. No change in view as the instrument is in the continuation triangle.
COTTON
The instrument has reached the target 73-74 zone after the rejection from 78 level. The reaction from here is important for the upside continuation or downside continuation. Staying aside for now.
COPPER
The instrument has broken below the 100 SMA 263.55 level and is now in the consolidation triangle. The daily close below 260 is required for the downside continuation into 242 level. SL on short entries should be above 270.
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.