Copper Approaching Key Resistance
Axi | May 24, 2017 10:44
Originally published by AxiTrader
COCOA - The rejection ahead of $2100 resistance confirmed that the downtrend remains clearly intact. Immediate support is seen at $1970. A break below would then signal a continuation of the decline towards the recent low at $1750.
COFFEE failed to recover after the bounce off $125, and a retest of the level seems increasingly likely. Expect decent resistance at the 21 DMA near $133.50, as well as the falling trendline from the January high.
COPPER had a solid recovery after support at $2.48 held once again. The short-term outlook remains mixed, however. Copper faces strong resistance in the area between $2.60 and $2.63 - where the 55 & 100 DMA and the falling trendline from the February high lie. Should it break above it though, an extension to at least $2.7150 seems likely.
GOLD has come under pressure after resistance at $1265 proved to be too tough. Keep an eye on the $1245 level. A break below would signal that Gold is likely to extend losses to $1215 in the near-term.
NATURAL GAS volatility picked up last week, but the commodity is again consolidating in a rather tight range. The short-term outlook is mixed following the rejection off $3.43 resistance. Keep an eye on $3.10 support. Should Nat Gas break below it, a decline towards $2.90 is quite likely.
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SOYBEAN is still struggling to rally as selling interest remains high. Traders should expect another test of the key support level at $930 in the near-term. A break below would then pave the way for an extension of the downtrend towards $850.
While many commodities are consolidating, there is certainly no lack of volatility in WTI. Speculation about an extension of the OPEC deal has led to a rally to $51.50 and WTI is not showing any signs of exhaustion yet. However, traders should keep in mind that an OPEC deal is already priced in now. Therefore, the potential for a large rally post-OPEC has diminished. Overall, the short-term outlook is positive though, and the next significant resistance level lies at $53. To the downside, expect decent support at $50.50 and $49.60.
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