Originally published by AxiTrader
COCOA had a break out of the triangle pattern on the weekly chart and is currently testing a major resistance level around $2080. A clear break above that level would pave the way for a rally towards $2185. To the downside, expect decent support ahead of $2000. While the overall downtrend remains intact, there is potential for a short squeeze should cocoa clear that resistance level at $2080.
COFFEE has failed at the first test of $130 resistance. However, it managed to bounce off the lower channel line, which signals there could be a recovery in the short-term. Expect solid resistance at the 21 DMA around $133.
COPPER has recovered since it bounced of $2.90 support, and the short-term outlook is still positive. The next obstacle for the commodity now lies at $3.08. A test of that level seems likely in the near-term, and a clear break above it would pave the way for a rally back towards $3.18.
NATURAL GAS is looking increasingly bearish following the wedge breakout last week. The commodity is likely to extend losses towards $2.75 soon, and a break below could increase downside momentum. The next notable support level lies then at $2.50.
WTI has been under a lot of pressure in the past few trading days, and the daily close below 200 DMA has switched the short-term outlook to negative. WTI has found support at $49 so far, but support is looking fragile. A break sub-$49 would signal a move towards $47.70.
