Originally published by AxiTrader
Cocoa
In last week's edition of the Commodities Report, we highlighted that Cocoa looks oversold, and that a short squeeze might occur. Cocoa did bounce, although the rally has been rather modest so far, given the large decline in the past few months. However, Cocoa has cleared one significant resistance area at $2730-40, and this suggests that a test of the $2844 (early October high) might follow.
Coffee
Coffee has broken above $160.80 resistance and remains very well bid. Although we are already above $164 now, a potential retest of the former resistance level will likely attract decent buying interest, so keep an eye on that one. To the topside, immediate resistance is noted around $166.25, followed by $169.25-30. Above $170, there is no significant resistance until $185. The RSI is indicating overbought conditions on the hourly charts, but not yet on the Daily and Weekly. Overall, the technical outlook remains bullish and buying dips the preferred strategy for now.
Copper
Copper has bounced off 2.0830 and managed to recover to $2.1455 today. Short-term techs remain bearish, but the bounce off the aforementioned support level has been quite strong and there is a potential inverse H&S pattern visible on the Daily. Watch the trendline resistance from the June highs.
Natural Gas
Natural Gas has seen a sharp reversal after it posted a top at $3.36. It broke below $3.10 support and through the rising trendline from the May low. Techs remain still bullish overall, but with a mixed bias. $2.50 needs to hold, otherwise NG is likely to extend losses into the lower $2.00s.
Soybeans
Volatility in Soybean continues to be rather low. It failed to break above $1000 yesterday and once again today, which is also near the 23.6 % Fibo of the June-September decline. Further consolidation seems likely in the near-term, with immediate resistance above $1000 seen at $1020.
Crude Oil
WTI is under pressure after it failed at $52.15 resistance and bulls should be concerned as it is approaching the $49.00/10 support area (which also includes the 23.6 % Fibo of the July-October rally). A break below would pave the way for a test of $47 support.
Gold
Gold has been recovering slightly since it bounced off $1240, and the key level to watch remains $1302, which acted as key support prior.
