Copper Fails At Trendline Resistance
Axi | Jun 14, 2017 12:13
Originally published by AxiTrader
COCOA failed at the trendline resistance from the January high and is approaching support at $2000. A break below $1937 support would confirm the high at $2080 and would pave the way for a move towards $1753. The downtrend remains clearly intact and selling rallies the preferred strategy.
COFFEE has traded within a tight range in the past trading days. Support at $125.00 is holding for now, but looks fragile. A breakout seems likely in the near-term. If coffee breaks below $125, a further correction towards $120 seems likely.
COPPER briefly broke above the upper channel last week, but failed to sustain momentum. Resistance proved to be strong there, and given the slight downtrend, a move towards the lower channel line seems likely in the near-term.
The outlook for Natural Gas is bearish following the break below $3.10 support. The commodity has found imminent support at $2.95, but is very likely to test $2.88 soon. A clear break below that level would then pave the way for a move towards $2.50. To the topside, expect heavy resistance ahead of the $3.10 level.
SOYBEAN remains in a strong downtrend, but bullish RSI divergence suggests that the commodity could recover slightly in the near-term. However, the topside is likely to be capped around $960, if soybean manages to reach that level at all. Selling larger rallies remains the preferred strategy so far.
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WTI bounced off $45.20 support and has recovered a bit in the past few trading days. Overall, the short-term outlook is rather negative. However, a break above $47.00 would confirm the short-term bottom at $45.20 and pave the way for another test of $49, where traders can expect strong resistance.
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