Originally published by AxiTrader
The recovery in COCOA is getting more serious. Price has broken above a major resistance level $2080, which paves the way for a rally towards at least $2250. While the overall long-term downtrend remains intact, this could very well be the beginning of a larger short squeeze. Traders looking for buy opportunities could keep an eye on the former resistance level at $2080.
COFFEE is trading with a falling wedge, and further losses seem likely. The commodity is in a strong downtrend and a break below $120 will likely lead to further negative momentum. A test of $115 support should then follow quickly.
COPPER has resumed its uptrend and is likely to reach a fresh multi-year high soon. Traders looking for buy opportunities could keep an eye on the area between $3.13 and $3.15. Copper should run into decent support there, if we see another retest. The next major resistance level now lies around $3.25.
WTI has been rejected at $52.80 resistance and has seen a retracement since then, but demand remains solid. Only a clear break below $50 would signal that WTI has lost momentum and that it might see a correction back towards $47. Traders should keep an eye on the $51.15 level for support (21 DMA), followed by the rising trendline from the August low.
NATURAL GAS is consolidating at the moment and there are not many trading opportunities. Trading the range seems the best strategy – fading rallies towards $3.10 and buying dips if we see another retracement towards $2.75.
SOYBEAN is consolidating around the 200 DMA and within a triangle pattern. Demand is solid and the rising trendline from the July low held several times. However, at the same time, Soybean is struggling with resistance above $1000. In the near-term, further consolidation seems likely, and it might be worth waiting for a clear breakout.
