Commodity Blog

Posts Tagged ‘chart’

The oil price entered the downward channel, promising a bearish tendency for the commodity. For those traders, who wish to follow the bearish trend, the green line shows a potential target where traders may start taking profit. In case the prices close above the channel a breakout is likely occur. In such case the red line would point at a potential stop-loss level. Traders should remember that fundamentals, especially the situation in Europe, currently have a great impact on the commodity market, so they may interfere with technical analysis and should also be taken into account. Click the image to enlarge it to a full-size screenshot:

If you have any questions or comments regarding this chart pattern for oil, please feel free to reply below.

The pennant pattern can be seen of the daily silver chart. It resemble the flag pattern, but instead of moving in reverse to previous and future direction, as on the flag patter, prices on the pennant pattern consolidate before breaking out. As the flagpole on the current pattern points down, a breakout to the downside is expected. The pattern support the seasonal tendency of the metal to be weak at this period of year. Click the image to enlarge it to a full-size screenshot:

If you have any questions or comments regarding this chart pattern for the silver, please, feel free to reply below.

We can see a head-and-shoulders pattern on the daily chart of copper. This pattern often shows that price can’t continue to go in its previous direction and should reverse its trend. On this chart we see that copper wasn’t able to rise above the ”head” level ($10,160) and stalled at the ”shoulders” level ($9,784). The green line shows the target ($8,066) in case the price will break below neckline ($9,114). This target is derived by subtracting the height of the pattern from its lowest level. The technical analysis shows that copper is endangered in the shorter term, even though fundamentally the industrial metal looks attractive. Click the image to enlarge it to a full-size screenshot:

If you have any questions or comments regarding this chart pattern for the copper, please, feel free to reply below.

A symmetrical triangles pattern has formed on the chart for Brent crude oil (4-hour time frame). This pattern appears as swings on the chart start to narrow, signaling that a breakout may occur soon. Often a breakout shows direction in which commodity price will move in near term. The numbers on the current chart shows the possible targets when a breakout will occur. Usually, a breakout occurs to the direction of the previous trend. The present pattern isn’t ideal as the triangles aren’t completely symmetrical and it’s possible for the price to behave somewhat differently from the prediction. Click the image to enlarge it to a full-size screenshot:

You can see a flag chart pattern on the oil chart (4-hour time frame). The chart is named so obviously because it resembles a flag. It consists of a ”pole”, marked by the vertical yellow line on the chart, and a ”flag”, or the two parallel lines on the chart. The ”pole” marks a strong move of prices, while the ”flag” shows a small correction of prices in a small range (marked by the ”flag” or the parallel line on the chart) as prices take a breather after an initial strong move. This chart signals that the correction is a temporary pause before the prices will move in the direction of the initial strong move, in this case the next wave will be bullish. It’d be welcomed by gold bulls, who may be quite disheartened after the weak January performance of the precious metal. The price should rally after it breaks through the upper level of the ”pole”. Click the image to enlarge it to a full-size screenshot:

If you have any questions or comments regarding this chart pattern for the gold, please, feel free to reply below.

The chart shows that the oil is consolidating, demonstrating the symmetrical triangle pattern. At this stage the trend can be considered neutral and a breakout may occur in any direction, establishing a new trend. The yellow lines show probable target levels in case of a breakout. Click the image to enlarge it to a full-size screenshot:

If you have any questions or comments regarding this chart pattern for the oil, please, feel free to reply below.

Michael Hewson of CMC Markets speaks about the confirmation of the so called “death cross” in the broad commodity index chart. It’s a cross of the 50-day moving average below 100-day moving average. The pattern was followed by the bearish trend 3 times out of 4 during the last 10 years. The ”death cross” pattern is also confirmed by the head-and-shoulders pattern on the weekly chart of the commodity index.

A head-and-shoulder pattern has formed on the daily chart of silver. The $18.86 and $18.69 levels, indicated by the blue lines, form the shoulders. The red line shows the level of resistance (the neckline), which is at $17.43. This pattern suggests that the downward trend will strengthen and silver will extend its decline. We should wait for a significant move down below the neckline to confirm the pattern. In case the pattern will be confirmed, the price expected to fall to the target level of $15.05.

This video presents a rather optimistic view on the gold and silver future growth, suggesting a continuation of the bullish trend and setting of the new record high levels. It operates with the fundamental on the production and technical data in a form of the long-term charts. The author of the video also suggests that the Australian stock market may also benefit from the rising commodity prices (and especially gold).

The ascending triangle pattern has formed on the 4-hour chart of crude oil. The pattern is confirmed, as the price rate touched twice the horizontal line and the upwardly sloping line (at $83.35 level and near $85.15), and suggests the bullish trend for the oil. The level near $85.70 is the resistance level, above which the breakout should occur to support the outlook that the price is actually going to rise further. Click the image to enlarge it to a full-size screenshot: