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Coffee Breaks Below Major Support

Published 21/06/2017, 12:19 pm
Updated 06/07/2021, 05:05 pm

Originally published by AxiTrader

COCOA - The downtrend remains clearly intact. Cocoa broke back below $2000 support, which confirms the high at $2073 and paves the way for another move towards $1751. Selling rallies remains the preferred strategy. Expect decent resistance at $1980-2000 and ahead of $2070.

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COFFEE - Following the breakout below the key support level at $124.80, the outlook has turned even more bearish. A test of $118.85 seems likely in the near-term. Coffee hasn't had a proper rally since the beginning of the year, and this shows that selling interest remains strong.

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COPPER is not the most exciting commodity to trade at the moment. It continues to consolidate and the outlook remains mixed. Short-term, the topside should be capped ahead of the 100 DMA around $2.62, while support at the 200 DMA around $2.51 should hold.

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NATURAL GAS is testing a significant support level at $2.88, and a clear break below could pave the way for a move towards $2.50. The short-term outlook is negative following the break sub-$3.10, and further losses seem likely. Expect heavy resistance in the area between $3.05 and $3.10.

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SOYBEAN still looks weak overall, but it managed to recover slightly following the bounce off $910 support. However, the topside was capped at the 55 DMA ahead of $950. Going with the trend is still the preferred strategy. Another test of $910 seems likely in the near-term.

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WTI came under heavy pressure in the past trading days, and it seems likely that it will test $42.20 support soon. A clear break below that level would signal that a further correction towards at least $39.10 is likely. To the topside, expect decent resistance at $44.20 and $45.20/25.

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