Copper And WTI Test Major Resistance Areas
Axi | Jul 04, 2017 13:05
Originally published by AxiTrader
COPPER ran into solid resistance at $2.71, but has been able to gather some decent momentum in the past two trading weeks. A clear break above $2.71 would pave the way for an extension of the rally to at least $2.82. To the downside, expect strong support at $2.6450.
WTI is currently testing a major resistance area between $46.50 and $47.00. A daily close above it would be a quite strong signal, and pave the way for a recovery to at least $49.50. A lot of speculators are still short WTI, and a break above $47 could trigger some further position covering.
COCOA is testing the resistance at the 100 DMA near $1966. While the price has recovered slightly in the past few trading days, the downtrend remains intact. Strong selling interest can be expected in the area between $2070 and $2080. Cocoa will likely struggle to clear that resistance.
COFFEE's recovery continues following the bounce off $115. The price broke above the 21 DMA, but the commodity is likely to encounter decent resistance ahead of $130, and again ahead of $135 (where the 100 DMA lies). The downtrend remains strong, and selling rallies the preferred strategy.
NATURAL GAS is trying to recover, but resistance ahead of $3.10 is likely to prove strong once again (the 100 and 200 DMA are also close). The short-term outlook remains mixed, unless natural gas clears the aforementioned resistance area. Another rejection would signal that the commodity is likely to test $2.85 again. Below that level, next support lies at $2.52.
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SOYBEAN is approaching the 100 DMA. $988 is a major resistance level, and also close the 200 DMA. A break above that level would be significant, and signal that a larger short squeeze could follow. However, Soybean should overcome the obstacle at $970 first.
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