Originally published by AxiTrader
Copper has seen a reversal following the rejection ahead of $3.18 resistance. The uptrend remains intact, but given the overbought conditions, there is potential for a further correction. However, strong support can be expected in the area between $2.94 and $2.96, and it is highly likely copper bulls would use that as opportunity to add to long positions.
WTI failed several times at the falling trendline resistance from the May high, but has proven resilient as well, with another decent bounce ahead of $45 support. Overall, all depends on the trendline and the 200 DMA. If WTI can clear those two obstacles, a rally towards $52 is highly likely.
Natural Gas is struggling following the rejection ahead of $3.10 resistance. However, trendline support has held once again, and we could see another rally towards $3.10 in the short-term. Nevertheless, there seems to be a lack of momentum to overcome that obstacle, and the preferred strategy remains to sell rallies.
Cocoa is still consolidating within a triangle pattern. Resistance ahead of $2060 is heavy, and the commodity will likely struggle in case we see a rally towards that level. To the downside, key support is seen in the area between $1830 and $1860.
Coffee has been very quiet in the past few trading weeks, and there are not many opportunities. It might be best to focus on other commodities until coffee manages to break out of the current 126.70-133.45 range.
Soybeans have resumed their downtrend and it is likely that we will see another test of $900 in the near-term. Watch $970-980 for possible short opportunities.
