Coffee Breaks Below Major Support
Axi | Jun 21, 2017 12:19
Originally published by AxiTrader
COCOA - The downtrend remains clearly intact. Cocoa broke back below $2000 support, which confirms the high at $2073 and paves the way for another move towards $1751. Selling rallies remains the preferred strategy. Expect decent resistance at $1980-2000 and ahead of $2070.
COFFEE - Following the breakout below the key support level at $124.80, the outlook has turned even more bearish. A test of $118.85 seems likely in the near-term. Coffee hasn't had a proper rally since the beginning of the year, and this shows that selling interest remains strong.
COPPER is not the most exciting commodity to trade at the moment. It continues to consolidate and the outlook remains mixed. Short-term, the topside should be capped ahead of the 100 DMA around $2.62, while support at the 200 DMA around $2.51 should hold.
NATURAL GAS is testing a significant support level at $2.88, and a clear break below could pave the way for a move towards $2.50. The short-term outlook is negative following the break sub-$3.10, and further losses seem likely. Expect heavy resistance in the area between $3.05 and $3.10.
SOYBEAN still looks weak overall, but it managed to recover slightly following the bounce off $910 support. However, the topside was capped at the 55 DMA ahead of $950. Going with the trend is still the preferred strategy. Another test of $910 seems likely in the near-term.
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WTI came under heavy pressure in the past trading days, and it seems likely that it will test $42.20 support soon. A clear break below that level would signal that a further correction towards at least $39.10 is likely. To the topside, expect decent resistance at $44.20 and $45.20/25.
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