commodities

European Open Preview – Markets shrug off latest trade tensions as dollar holds firm at 5-week high

Posted on April 6, 2018 at 9:29 am GMT

Here are the latest developments in global markets: FOREX: The US dollar came under fresh selling pressure yesterday after President Donald Trump stepped up the trade war with China and threatened additional tariffs on Chinese imports. The greenback briefly dipped below the key 107 level, having hit a 5-week high of 107.49 yen earlier in the day. Market participants chose instead to focus on the strong economic fundamentals of the US and global economy and the dollar quickly recovered, with [..]

Technical Analysis – WTI crude oil futures hover above two-week low of 62.75

Posted on April 3, 2018 at 9:45 am GMT

WTI has reversed back down again and plummeted aggressively after finding resistance at the 65.40 level during yesterday’s session. The price recorded a new two-week low of 62.75, which holds near the 20-day simple moving average (SMA) and currently, is paring some losses. After their deep fall, in the 4-hour chart, the momentum indicators are moving higher after hitting the oversold areas. The Relative Strength Index (RSI) is hovering below the 50-neutral level in the past few days but is [..]

Technical Analysis – Gold extends gains after rebound from 1321; immediate resistance at 20-SMA

Posted on April 2, 2018 at 9:22 am GMT

Gold has been outperforming today following the rebound from the 1321 support level that hit last Thursday. Despite the latest pullback though, the precious metal has not posted a lower bottom below 1321, which makes one hesitant to trust further declines for now. Looking at momentum oscillators in the 4-hour chart, they suggest further upside movement may be on the cards in the short-term. The RSI indicator is approaching the 50 level and is also pointing upwards. The MACD oscillator jumped above [..]

Technical Analysis – WTI oil futures maintain upward pattern; could weaken in short-term

Posted on March 27, 2018 at 2:46 pm GMT

WTI oil futures for May delivery look fairly bullish in the 4-hour chart, continuing to trade inside an ascending channel since the mid of March. Yesterday the market touched a two-month high at 66.52, coming closer to break the three-year peak of 66.63 hit around the end of January. Looking at momentum indicators, the RSI has slowed down further today after touching overbought territory yesterday, signaling that the market could weaken in the near-term. Stochastics have already posted a bearish cross, with [..]

Technical Analysis – Gold at one-month highs; rally could be overstretched

Posted on March 26, 2018 at 3:07 pm GMT

Gold rallied during the past week, jumping from three-week lows to one-month highs. Price action is currently taking place above the Ichimoku cloud and the moving average lines, sending bullish signals for the trend of the market, but momentum indicators suggest that any weakness in the short-term should not be a surprise. The RSI is picking up speed above its neutral threshold of 50, though, it is not far away from overbought levels, hinting that maybe there is not much space left for additional gains. The fast stochastics support [..]

Special Report – Metal prices come under fire from Trump tariffs; Aussie also feels the pressure

Posted on March 22, 2018 at 1:34 pm GMT

After an impressive two-year rally, industrial metal prices have been having a stormier time in 2018, being first swept over by the market turbulence caused by the sell-off in global equities and bonds, then by the announcement by US President Donald Trump that he is imposing tariffs on US imports of steel and aluminium. Commodity-linked currencies such as the Australian dollar have also been pulled lower by the market volatility and subsequent rise in risk aversion. However, despite an international [..]

Technical Analysis – Brent crude oil futures post 6-week high; bullish bias in short term

Posted on March 21, 2018 at 1:59 pm GMT

Brent crude oil futures reached a fresh six-week high of 68.28 during today’s European session and extended oil’s bullish run, which started from the 64.00 handle. Prices broke above the 67.90 key level and are trading well above their moving averages. The bullish picture in the short-term is further supported by the technical indicators. In the 4-hour chart, the indicators are pointing to a continuation of the bullish bias. The MACD oscillator is moving sharply higher above its trigger and zero lines, [..]

Technical Analysis – WTI crude futures trades around 2-week high; bullish bias but possibility of overstretched rally

Posted on March 20, 2018 at 10:26 am GMT

WTI crude oil futures have reversed back up again after finding support at the 38.2% Fibonacci retracement level of 61.41 of the downleg from 66.60 to 58.15 and reached a two-week high of 62.82 today. Prices successfully broke above the 50.0% Fibonacci and are trading above their moving averages in the 4-hour chart. The bullish picture in the short-term is supported by the MACD, however, the stochastic oscillator is signaling a possible bearish correction. The MACD oscillator is rising in the positive zone above its trigger line, while the [..]

Technical Analysis – Gold remains bearish as recent bounce runs out of steam

Posted on March 19, 2018 at 9:12 am GMT

Gold has been underperforming in the past three days, breaking back below the key level of 1312.50. When looking at the bigger picture the precious metal lacks a clear trend, while in the short-term, technical indicators support a bearish structure. In the 4-hour chart, momentum indicators are pointing to a negative bias with the RSI indicator approaching the 30 level and the oversold zone. Moreover, stochastics are heading downwards to reach oversold levels, with the bearish cross between the %K the %D line suggesting [..]

Technical Analysis – Copper futures struggles near 23.6% Fibonacci mark; neutral in short term

Posted on March 15, 2018 at 1:30 pm GMT

Copper futures are challenging the 23.6% Fibonacci retracement level of the upleg at 3.1163 from the low on May 2017 to the high in December 2017. Prices remain under pressure as the 20 and 40 simple moving averages on the daily timeframe are acting as significant resistance levels near 3.1700. Technically, momentum indicators are pointing to a negative bias. The RSI indicator is moving slightly below the 50 level and is pointing south while the %K line of the stochastic [..]

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