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Coffee Short Squeeze Continues

Published 08/08/2017, 11:39 am
Updated 06/07/2021, 05:05 pm
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Originally published by AxiTrader

COFFEE continues to build momentum and is approaching a significant resistance level at $143.60. Should it overcome that obstacle, a test of $150 seems likely. However, the daily RSI is showing already slightly overbought conditions and resistance at $143.60 might prove tough on the first test. To the downside, expect solid support around $137.60.

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COPPER is extending gains following that major breakout above $2.82. There is now little resistance until $3.00 and it seems likely that the commodity will l test that level soon. Should we see a correction first, expect initial support at $2.86 and stronger one at $2.82.

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COCOA was once again rejected at the major resistance level at $2080 and the short-term outlook is negative. A clear break below $2000 support would signal a correction back towards $1900.

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NATURAL GAS is still consolidating. However, the positive RSI divergence near a key support level suggests that the commodity could recover in the near-term. Initial resistance is noted at 2.89. A break above that level would pave the way for an extension of the rally towards 3.10.

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SOYBEAN is struggling following the break back below $1000. The rallies are weak and selling interest remains high. Initial resistance is now seen at $972, followed by stronger resistance in the area between $983 and $985 - near the 38.2 % Fibo of the July decline.

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WTI is trading within a triangle pattern. However, following the strong bounce off $48 support, a breakout to the topside seems more likely. A daily close above $50 would be a strong signal, and WTI could extend gains to $52 then.
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