WTI Rejected Off Trendline Resistance
Axi | Aug 02, 2017 12:02
Originally published by AxiTrader
WTI broke above the falling trendline resistance from the March high, but reversed gains today. Nevertheless, the short-term technical outlook remains positive as long price can hold above 47.85 support. To the topside, expect solid resistance ahead of $51, followed by $51.95/52.00. The RSI suggests WTI is still not in overbought territory, and that the rally could extend in the near-term.
In COPPER, momentum has slowed down a bit, but the commodity remains well bid. Major support is now seen in the area between 2.8220 and 2.83 - former key resistance prior to the breakout last week. To the topside, there is now little resistance until 3.00 and it is likely that copper will test that level in the near-term.
NATURAL GAS is trading within a descending channel and the short-term outlook is bearish following the break below 2.80 support. A test of the significant support level at 2.50 seems likely, although natural gas should find initial support at 2.65 as well. Overall, selling rallies is the preferred strategy and traders should keep an eye on resistance at 2.89 and 2.98, as well as the upper falling trendline.
COCOA had a solid recovery since it bounced off $1800 support. However, the commodity is approaching a level of significant resistance at $2085. Should it fail again here, a correction back to $1900 seems likely. In the case of a clear breakout, there is not much resistance until $2185.
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COFFEE is still gaining momentum after the break above the major trendline resistance. In the short-term, further gains seem likely, although there is solid resistance at 143.75. To the downside, expect support at 134.25, followed by 130.
SOYBEAN is looking increasingly bearish following the rejection at $1035 resistance. The break below $988 support confirmed the short-term top there, and suggests that a correction back towards $900 could follow soon.
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