Commodities

Technical Analysis – WTI oil futures overbought after capturing one-month high

Posted on November 22, 2019 at 1:06 pm GMT

WTI oil futures for January delivery closed above the 200-period moving average (SMA) on the four-hour chart on Wednesday and spiked to a one-month high of 58.64, confirming a new higher low at 54.84. The price is currently consolidating around 58.60, this being the 61.8% Fibonacci of the 63.22-50.98 downleg, which is expected to challenge the bulls in the short-term as the RSI and the Stochastics flag overbought conditions – a sign that positive momentum may soften. A downside reversal is expected [..]

Technical Analysis – Gold stays within tentative descending channel

Posted on November 18, 2019 at 8:27 am GMT

Gold recouped a small portion of its losses last week to close slightly positive after finding support at 1,445 and near the bottom of a tentative descending channel. Despite the rebound, the price remained slightly below its 20- and 50-simple moving averages (SMAs) that maintain a bearish cross and under the Ichimoku cloud. Meanwhile in momentum indicators, signals are also discouraging as the RSI was unable to return above its 50 neutral mark and the MACD held stable below its red signal [..]

Technical Analysis – WTI oil futures resume uptrend but shift sideways as momentum dries

Posted on November 12, 2019 at 10:08 am GMT

WTI oil futures are trading around the 57.11 area, which is the 50.0% Fibonacci retracement of the down wave from 63.22 to 50.98, with an undecided direction in hand. Oil has realigned with the positive picture, climbing above 56.90 but then adopted a range (55.66 – 57.83) in the last week, something also viewed in all the Ichimoku lines as they have converged. The short-term oscillators suggest that directional momentum has disappeared but lean towards a positive outlook. The MACD [..]

Technical Analysis – Palladium futures’ correction looks to test 50-day moving average

Posted on November 11, 2019 at 3:31 pm GMT

Palladium futures’ sharp pullback suggests that negative sentiment may be increasing, as it approaches the 50-day simple moving average (SMA), presently at 1660. Noteworthy, is the easing in the 20-day SMA’s slope, which could be the spark for the negative scenario. The bearish picture follows a three-month ascent, which commenced on August 2 from the 1376 level. The short-term oscillators confirm that negative momentum is increasing. The MACD has distanced itself below its red trigger line in the positive zone, [..]

Technical Analysis – Gold looking neutral-to-bearish, support structure may disagree

Posted on November 11, 2019 at 10:18 am GMT

Gold rebounds off the support structure of 1459 – 1453 with buyers trying to push higher. The yellow metal deflected off the resistance structure of 1514 – 1520 last week and dropped underneath all simple moving averages (SMAs) and slightly below the 1459 trough of October 1. Furthermore, the downward slopes in the SMAs lean towards a negative outlook. Yet, the short-term oscillators suggest that negative momentum is starting to weaken. The MACD, deep in the negative region, has just [..]

Technical Analysis – Silver turns bearish with bears pushing for further declines

Posted on November 8, 2019 at 2:32 pm GMT

Silver looks to be shifting to a bearish bias as it moves below the swing low of 16.85 from August 19. The commodity’s bearish state seems to be backed by the downward slopes in the Ichimoku lines and the 20- and 40-day simple moving averages (SMAs), with the 40-day SMA nearing a bearish cross of the 100-day one. Furthermore, the technical indicators reflect strong negative momentum in place, with the RSI currently in oversold territories, while the MACD is accelerating [..]

Technical Analysis – Gold approaches the upper boundary of a range

Posted on November 4, 2019 at 8:23 am GMT

Gold has remained confined in a narrow sideways range – with an upper bound near 1517 and a lower end around 1474 – for a month now. The short-term bias is therefore neutral, something also supported by the converging 50- and 200-period simple moving averages (SMAs) on the 4-hour chart. A clear break on either side of this range is required to set the near-term direction. Taking a look at momentum oscillators though, they paint a slightly bullish picture, suggesting [..]

Technical Analysis – Gold halts further losses, hovers around 23.6% Fibonacci

Posted on October 30, 2019 at 7:47 am GMT

GOLD has stalled around 1488, which is the 23.6% Fibonacci retracement of the up leg from 1266.20 to 1556.92. The precious metal seems to be skewed towards a short-term negative outlook after the price reversed back down from 1517 levels and below the simple moving averages (SMAs) but is expected to remain within its trading range. The short-term oscillators suggest a pause in the negative directional momentum. The MACD is below its red trigger line in the negative zone, but [..]

Technical Analysis – WTI oil futures cautiously positive; pullback steers price below 200-SMA

Posted on October 29, 2019 at 3:54 pm GMT

WTI oil futures are leaning towards a positive short-term picture despite penetrating back below the 200-period simple moving average (SMA). The short-term oscillators are confirming a neutral-to-positive outlook unfolding, with the price now breaking back above the 200-period SMA. The RSI’s negative momentum is easing, heading higher in the bearish territory to the neutral mark. The MACD, despite having fallen below its red trigger line, holds above the zero line. However, the Kijun-sen and 200-period SMA are adopting a horizontal [..]

Technical Analysis – Gold looks to be forming a triangle after a neutral week

Posted on October 21, 2019 at 7:37 am GMT

Gold continued to trade along the downward-sloping trend-line following the negative breakout of an ascending channel, despite closing neutral last week. Traders may maintain neutral behavior in the short-term according to the flattening RSI and MACD, probably keeping the market below the descending trend-line as the bearish crossover between the 20- and 50-day simple moving averages suggests. However, questions are rising about whether the bears are strong enough to violate the new support line drawn from May’s troughs that looks [..]

Legal disclaimer: The material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instruments. XM accepts no responsibility for any use that may be made of these comments and for any consequences resulting in it. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. The research and analysis does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it.

It has not been prepared in accordance with legal requirements designed to promote the independence of research, and as such it is considered to be marketing communication. Although we are not specifically constrained from dealing ahead of the publication of our research, we do not seek to take advantage of it before we provide it to our clients. We aim to establish, maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. We operate a policy of independence, which requires our employees to act in our clients’ best interests and to disregard any conflicts of interest in providing our services.

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losing all of your invested capital, so please make sure that you fully understand the risks involved.

How can we help?

Live Chat Terms