Commodities

Technical Analysis – Silver jumps above 18.00 and into overbought zone

Posted on February 19, 2020 at 8:21 am GMT

Silver staged a remarkable rally beyond the 18.00 number after closing above the 200-period simple moving average (SMA) on the four-hour chart on Tuesday. With the RSI signaling overbought conditions and the price currently testing a former resistance area which is near the 23.6% Fibonacci of the long upleg from 13.87 to 19.63 (November 2018- September 2019), there is an increasing possibility of a downside correction. In this scenario, the price is expected to retreat to 18.13, where it recently [..]

Technical Analysis – WTI futures fail to conquer neckline of looming double bottom

Posted on February 18, 2020 at 8:57 am GMT

WTI oil futures yesterday – as positive momentum evaporated – were unable to decisively overrun the neckline and complete a possible double bottom pattern. The commodity today has declined to the nearby Ichimoku cloud’s upper band around 51.30, with backing from the technical indicators and the easing in the red Tenkan-sen line. The short-term oscillators suggest an increase in negative momentum for now. The MACD, in the positive region, has slipped below its red trigger line, while the falling RSI [..]

Technical Analysis – Gold bulls look exhausted near 2-week peak in very short-term

Posted on February 17, 2020 at 7:15 am GMT

Gold stretched its upside rally to a two-week high of 1,584.90 on Friday before pulling slightly lower in a bullish sloping channel in the 4-hour chart. Currently, in the near term, the price is losing some momentum confirmed by the technical indicators as the RSI is flattening near the 70 level, suggesting an overbought market. Also, the stochastic oscillator is turning lower as it posted a bearish crossover within its %K and %D lines above the 80 level, signaling a [..]

OPEC considers output cuts; will they be worth it? – Commodity News

Posted on February 13, 2020 at 12:07 pm GMT

At the end of 2019 analysts were positive that crude markets may be at the start of a bull run but China’s deadly coronavirus put a damper on those hopes in January. Amid fears of a collapse in demand, OPEC and its partners recommended further production cuts on top of an ongoing pact, but Russia decided to take more time to investigate the case, making markets wondering whether such an action would make much of a difference to the price outlook. Coronavirus is the [..]

Technical Analysis – WTI futures possibly forming a double bottom pattern

Posted on February 11, 2020 at 9:42 am GMT

WTI oil futures during yesterday’s trading session reversed ahead of the 49.29 fresh bottom – which is a 13-month low – forming the start of a likely double bottom pattern. Currently, the overhead Ichimoku cloud, the slipping red Tenkan-sen line and all downward sloping simple moving averages (SMAs) promote a strong negative picture. Moreover, the RSI is hovering below its 50 mark, further backing this view. That said, the MACD has climbed above its red trigger line, in the negative [..]

Technical Analysis – Gold’s climb restricted by Bollinger band and 23.6% Fibonacci

Posted on February 10, 2020 at 9:42 am GMT

Gold’s gradual incline – after reversing ahead of the 1,546 low – appears to have stalled between the 50-period simple moving average (SMA) and the upper-Bollinger band residing at the 23.6% Fibonacci retracement of the up move from 1,458.42 to 1,611.28. The short-term oscillators reflect improving positive momentum. The MACD, above its red trigger line, has risen above the zero mark, while the RSI is increasing in the bullish territory. Moreover, all SMAs have kept their bullish picture intact. A [..]

Technical Analysis – Are palladium futures completing a bullish cycle?

Posted on February 6, 2020 at 10:41 am GMT

Palladium futures have been well supported by the 20-day simple moving average (SMA) recently, but the bulls seem to be struggling to overcome previous record high levels around 2,400, with the price registering a negative candle on Wednesday. The price continues to lose ground on Thursday, increasing speculation of a bearish double top pattern as the momentum indicators are shifting south; the RSI and the Stochastics topped near overbought levels and are turning lower, while the MACD seems to be [..]

Technical Analysis – WTI oil futures bounce on 1-year trough; outlook remains bearish

Posted on February 4, 2020 at 10:41 am GMT

WTI futures recorded a fresh one-year low of 49.64 earlier today before turning higher, approaching the descending trend line, which has been holding since January 8. Looking at the momentum oscillators on the 4-hour chart though, they suggest further increases may be on the cards in the short-term. The RSI has started to slope north again, while the stochastic oscillator is also heading up after it posted a bullish crossover within the %K and D% lines. Should oil breach the descending trendline, the next resistance could come the 52.00 handle and the 40-period SMA at 52.46. [..]

Technical Analysis – Gold remains optimistic despite receding to Ichimoku cloud

Posted on February 3, 2020 at 9:19 am GMT

Gold’s recent withdrawal from 1,594 is tackling the uptrend line, drawn from 20 December 2019, and the 1,575 level – near the Ichimoku cloud – which is the 23.6% Fibonacci retracement of the up leg from 1,458.42 to 1,611.28. Moreover, the flattening of the Ichimoku lines reflects a pause in the market. Although positive momentum has weakened, the improving picture looks to be intact, something also aided by the upward sloping simple moving averages (SMAs). The MACD is in the [..]

Technical Analysis – Copper strong sell-off towards 4-month low

Posted on January 30, 2020 at 9:39 am GMT

Copper with delivery in March 2020 is looking strongly bearish in the short-term after plunging below the eight-month high of 2.8825 on January 16. Prices hit a four-month low of 2.5115 and the technical indicators are all pointing to further negative momentum in the near term. The RSI is also in an oversold territory below 30 and is clearly pointing down, while the MACD is strengthening its bearish view below trigger and zero lines. Moreover, the 20- and 40-simple moving [..]

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