Weekly Commodities Report - Copper Triangle Breakout
Axi | Nov 03, 2016 11:23
Originally published by AxiTrader
Cocoa broke above $2740 resistance last week, but failed to sustain momentum and fell back below $2700. Overall, techs remain bearish and further losses seem likely, with next support seen at the current yearly low at $2620. Should we see a break below it, there isn't much support until $2400.
In Coffee, we highlighted last week that the former resistance level at $160.70 is likely to act as significant support now, and indeed, price bounced off it quite strongly today. Coffee finished the trading day near $163.00 after trading as low as $160.25 at one point. The technical outlook remains bullish, both short- and long-term, and $169.20 is the next major bull target.
Copper broke out of the triangle pattern last week, and while momentum hasn't been strong so far, it remains well bid. However, expect heavy resistance in the $2.28-2.32 area.
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Natural Gas - short-term techs have turned bearish, and the sharp rejection off $3.16 resistance suggests that further losses are ahead. A test of $2.50 seems likely in the near-term, and a break below would pave the way for a move towards the low $2.00s.
Crude Oil techs have turned bearish after the break below $47.70 support, but the decline looks a bit overextended in the short-term and there is potential bullish RSI divergence on the Daily chart. To the topside, expect immediate resistance at $46.20, followed by $47.30 and $47.70. To the downside, a daily close sub-$45 would suggest a test of $43 is imminent.
Gold ran today into a strong resistance area between $1302 and $1306, and got rejected. A clear break above it would pave the way for a rally towards at least $1353. To the downside, expect decent buying interest in the $1284-86 area.
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