COMMODITY Key Levels. GOLD, WTI, COPPER

Intermediate

GOLD SPOT: Approaching key support;

  • We remain neutral on our gold position as the precious metal continues to slide from 6-year highs.
  • Market closed below 23.6% fibo at 1,398.38 (May-June rally) reinforcing near-term negativity and potential overstretched conditions.
  • Key support lies at 1,381 in line with an up sloping 21-Day EMA. Break below this level would complete the potential double top pattern, targeting 1,323.80 (MPO)
  • RSI, at 56, continues trend lower after falling out of overbought; a close above 1,398.38 negates the downside view.
Gold Chart

WTI Crude: Stuck between key EMA’s;

  • We remain neutral on our WTI position as market trades between 200/50-Day EMA, currently residing at 59.20 & 57.65 respectively.
  • Market currently rejecting the 57.96/58 resistance level and a close above may bolster potential to the 200-Day EMA.
  • Support comes from the 21-Day EMA at 57.06 and may excite bears if it gives way.
  • Only a close below the 21-Day EMA would make us reconsider our neutral position.
WTI Chart

Copper: Touching Key Up Trend Line;

  • Copper is trading at a crucial level as it touches a key uptrend line taken from the 2016 lows at c.262.50. Bears have failed multiple times to close below the key support level throughout June and a close below could be damaging for bulls.
  • Trending setup reinforce bear themes as they continue their trend south. 50/21-Day EMA’s lie at 271.65 & 268.16 respectively and may offer bears some selling opportunities
  • A close above the 50-Day EMA would negate the downside view.
  • Momentum setups reinforce the near-term negativity as trades at 36 and trends lower.
Copper Chart

Editor

Akif SH. Din MSTA, CFTe, 2018 Bronwen Wood Memorial Prize Winner, has a solid understanding of global markets, fundamental analysis as well as having a vast amount of knowledge in technical analysi...continued

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