Breakout In Coffee
Axi | Apr 26, 2017 12:31
Originally published by AxiTrader
COCOA retested the previous support level at $1865, but failed there and reversed its gains. Even if it overcomes this obstacle, the downtrend remains strong and selling rallies the preferred strategy. Expect decent selling interest in the area between $1980 and $2000. Following the break below key support at $1865, an extension of the decline towards $1500 seems likely.
COFFEE is looking increasingly bearish. It broke below a significant support area last week, and has come under increased pressure since then. Strong selling interest can be anticipated in the former support area between $136 and $137.
COPPER managed to bounce off $2.50 once again and is slowly approaching the 21 DMA. Should it break above the trendline resistance from the February high, it will likely extend gains to at least 2.75 resistance. The technical outlook is rather mixed short-term, but given the resilience copper has showed, the risks are to the upside.
GOLD has lost momentum and the break below $1270 suggests a further correction towards $1240 could follow. Short-term, the 200 DMA around $1250 will be of importance. Overall, the medium-term outlook remains positive and larger dips could be used as buy opportunity.
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NATURAL GAS is showing resilience as well. The $3.10 support level is still intact. While a breakout to the downside seems increasingly likely, price action suggests we will likely see a consolidation in the near-term rather than a sharp acceleration in momentum. Watch for solid support at 200 and 55 DMA around 3.00.
SOYBEAN broke back above the 21 DMA, but it is still struggling to remain bid. Strong resistance is noted at $986, and will likely cap the topside in the near-term. Look for sell opportunities.
WTI bounced off the 200 DMA today, but price action is still looking weak. The technical outlook is clearly bearish following the break below $52 support, and we will likely see a retest of $47 soon. Whether it will hold again, is questionable. A break sub-$47 would then pave the way for an extension of the decline to at least $45.
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