Copper Approaching Major Support
Axi | May 09, 2017 11:36
Originally published by AxiTrader
COCOA had a strong performance in the past three days, but the downtrend remains intact and there is solid resistance ahead. The 55 DMA lies ahead of the $2000 level, and the 100 DMA (which proved to be tough resistance four weeks ago) is also close at $2070. It would be need a clear break above $2183 to trigger a larger short squeeze, but this seems unlikely for now. The commodity is likely to struggle further in the near-term, and selling rallies is the preferred strategy for now.
COFFEE is consolidating following the bounce off $125 support. Strong resistance lies at $144.25 (38.2 % Fibo of the November-April decline), followed by $146.50 (200 DMA). Coffee is likely to remain under pressure in the near-term, and unless we see a clear break above $150, the short-term technical outlook remains negative.
COPPER came under pressure last week. After being rejected at $2.69 resistance, the commodity tumbled to a low of $2.49 and extended losses further today. Major support is seen at $2.4450, where the 200 DMA lies. It is also the December 2016 low. A break below that level is likely to accelerate downside momentum and pave the way for a $2.30 test.
GOLD found support at the 100 DMA and recovered slightly today. However, strong resistance can be expected at the former support levels at $1235 and $1250. Gold is likely to struggle there. To the downside, key support is noted at $1200-05, and a break below would suggest that the uptrend from the December low has ended.
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NAT GAS is barely moving these days. While the trendline from the March high continues to cap the topside, support at $3.10 is still holding. Nat Gas has also strong support around $3.00 - in form of the 55 and 200 DMA. Unless it breaks below that key area, the short-term outlook remains rather mixed.
SOYBEAN failed at the 55 DMA last week and came under renewed pressure today. The charts suggest further losses are ahead. The next notable support level lies around the 21 DMA at $952. Another test of $930 support is likely in the near-term.
WTI had a very volatile trading week. After breaking below $47 support, the commodity extended losses to below $44. That was a bit of an overreaction, and WTI quickly recovered. However, strong resistance is now seen at $47, and it will not be an easy task for WTI bulls to clear that one. Should they succeed, it would signal an extension of the recovery to at least $49 (200 DMA). For now, the short-term technical outlook is negative.
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