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Copper Approaching Major Resistance Level

Published 22/08/2017, 10:23 am
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Originally published by AxiTrader

COPPER remains strong. It is currently testing resistance at $3.00, which is also the 38.2 Fibo of the 2011-2015 decline. A clear break above that level would be a strong signal, and pave the way for an extension of the rally towards $3.30.

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COCOA failed once again at the trendline resistance from the early August high and the topside should remain capped at $1913 in the near-term. Another test of $1826 seems likely, and cocoa will come under additional pressure should that level break.

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The short-term outlook for COFFEE is increasingly bearish. Price broke below the 23.6 Fibo support and there is now little support until $120. Coffee has clearly ran out of momentum, and a further retracement of the recent gains seems probable.

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NATURAL GAS is still consolidating within a relatively tight range, and that is unlikely to change in the short-term. Watch for resistance at $3.01 and strong at $3.11. Support can be expected at $2.85 and significant one at $2.75.

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SOYBEAN is now trading within a descending channel and test of $900 support should follow soon. Look for resistance at the upper channel line, as well as the $942 level. To the downside, a break sub-$900 would pave the way for a retracement towards $850.

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WTI is currently trading within a triangle pattern, but the outlook is rather weak. WTI had a strong rally on Friday, but failed to sustain momentum today. It is clearly struggling and a break below the triangle line would pave the way for a $45 test.
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