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Copper Rally Showing First Signs Of Exhaustion

Published 30/08/2017, 01:46 pm
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Originally published by AxiTrader

WTI is trading within a descending channel and the outlook has turned negative following the clear break below $47 support. The next big level lies now at $45 and this needs to hold or WTI might extend losses to $42.50 in the near-term.

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The uptrend in COPPER is intact, although the commodity is showing first signs of weakness. There is negative RSI divergence on the hourlies and the metal failed to sustain momentum above 3.10. However, it should find decent support in the area between 3.0750 and 3.0785.

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COCOA is consolidating within a triangle pattern and the short-term outlook is mixed. The commodity remains in a downtrend overall, and it would need a clear break above $2080 resistance to trigger a larger short squeeze. However, cocoa seems to lack the momentum at the moment to clear this obstacle.

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COFFEE had managed to recover slightly, but is still struggling with resistance ahead of $133.40. Further, there is also trendline resistance at the upper channel line from the mid-August high. Overall, the short-term outlook remains negative until Coffee doesn´t clear resistance at $136.20.

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NATURAL GAS has a mixed short-term outlook and further consolidation seems likely. Keep an eye on the trendline support from the early August low, as well as the area between $2.85 and $2.87. Natural gas should find decent support there. To the topside, expect heavy resistance ahead of $3.10. It will not be easy for the commodity to clear that obstacle.

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SOYBEAN continues to show weakness. The commodity failed to even get close the resistance level $955 and has come under renewed pressure. In the near-term, expect to see another test of $900 soon.
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