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Upside Breakout In Copper Imminent?

Published 08/02/2017, 01:42 pm
Updated 06/07/2021, 05:05 pm
XAU/USD
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GC
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Originally published by AxiTrader

COCOA - The strong downtrend remains intact. While the hourly charts already show oversold conditions, Cocoa is not able to get any rest and selling interest remains high. It closed the day below the significant $2000 support level, which suggests that it could extend losses to $1800 in the near-term. To the topside, expect decent resistance in the $2048-67 area.

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COCOA - H4 Chart - 08.02.2017

COFFEE continues to trade within a descending channel from the late January high. For Coffee bulls, $140.70 is a significant level. A break below could lead to further position covering, as well as momentum selling, and push price towards the late December low around $132.50. The short-term technical outlook remains negative overall, and traders looking to establish a short position could consider selling rallies towards the upper channel line.

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COFFEE - H4 Chart - 08.02.2017

COPPER - Volatility is still rather low compared to what we have seen before the end of 2016. However, Copper is now forming an ascending triangle pattern. Given that momentum remains solid, we could see another test of $2.74 soon. A clear break out of the triangle would pave the way for a $2.9745 test.

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COPPER - Daily-Chart - 08.02.2017

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COPPER - Weekly-Chart - 08.02.2017

NAT GAS is showing a falling wedge pattern on the Daily, suggesting there is the potential for a reversal. However, for a bullish bias to be established, price has to break higher. This would then signal that we could see another rally towards $4.00 resistance in the near-term.

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NATGAS - Daily-Chart - 08.02.2017

SOYBEAN - The overall trend remains up, but it is lacking momentum. Price managed to hold above $1000, but it would need a clear break above $1080 for momentum to accelerate and pave the way for a move towards $1200.

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SOYBEAN - Daily-Chart - 08.02.2017

WTI is consolidating, but recent price action looked rather bearish. The key area to watch here is the one between $50 and $50.60 - a significant one for Oil bulls. A break sub-$50 would likely force a decent number of longs to close their positions and attract momentum selling. Immediate support would then lie at $49, but WTI would likely extend losses to at least $47 in such a scenario.

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WTI - Daily-Chart - 08.02.2017

GOLD is looking strong. The break above $1225 signals that the rally will extend to at least $1250 - the next notable resistance level. Strong support can now be expected at $1220, followed by $1206.

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GOLD - Daily-Chart - 08.02.2017

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