Weekly Commodities Report - Gold And Oil Approaching Key Levels
Axi | Nov 14, 2016 12:00
Originally published by AxiTrader
Cocoa broke beneath a key support at $2622, and the technical outlook remains bearish. While the daily chart is suggesting oversold conditions, selling rallies remains the preferred strategy and traders could watch the former support area around $2622 for potential short opportunities. If we zoom out to the monthly chart, there is some imminent support at $2268, but the next significant support area now lies at $2030.
COCOA.Daily
COCOA.Monthly
Coffee had a sharp rejection off $176, but short-term techs remain bullish as long as it can hold above the $152-154 area (former key resistance & 38.2 % Fibo of the May-November rally). Keep an eye on that area should we get a retest. To the topside, if Coffee manages to extend gains above the recent high, resistance can be expected around $185, followed by $201.55.
COFEE.Daily
COFFEE.Weekly
Copper had a sharp breakout last week and traded as high as $2.7450. The hourly charts showed extreme overbought conditions, but price has already retraced back to $2.51. Overall, short-term techs have turned bullish and decent support can be expected within the former resistance area of $2.27-2.32.
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COPPER.Weekly
Natural Gas had another down week, but remains resilient overall, as the $2.50 support level is still intact. It will take a clear break below for downside momentum to accelerate and pave the way for a move back into the low $2.00s and potentially the Feb 2016 low of $1.60.
NatGas.Weekly
Soybeans continue to consolidate after the failure at $1030 resistance. $1030-1043 will be a tough area to crack, but a break above would pave the way for a move back to at least $1135. To the downside, key support is seen at $933 and $920.
SOYBEAN.Daily
Crude Oil is approaching a very important support level at $42.95. While it is looking oversold on the hourlies, a break below the aforementioned level would be significant, and pave the way for a decline towards $39.25 (July low).
WTI.Daily
Gold has seen a sharp decline as well, and there is now little support until $1192-98. Should we see a break below that area, expect to see a test of $1047 fairly quickly.
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