Commodity Blog

Posts Tagged ‘chart’

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:

On the daily chart of a corn a symmetrical triangle pattern has formed.The downward breakout is probable as this pattern tend to break in the direction of the previous trend. But symmetrical triangle can break in any direction, so you can wait for a breakout to see where the price is going and minimize the risk. Anyway, in this case the pattern is weak and, wherever the price will be going, movement should not be strong. Click the image to enlarge it to a full-size screenshot:

This video presents a short-term technical analysis of the spot gold chart based on the Japanese candlestick patterns. The period of the last 15 days is reviewed, marking up the most important daily candles and the support/resistance levels that were formed by these candlesticks. In the end the short-term target for the gold is given. I recommend watching this video if you want to profit from the next few days’ move in gold disregarding your current long-term stance on this commodity.

This 10-minute video contains many technical chart reviews for the popular trading commodities. The long-term end of the year (2009) review helps the traders to understand how the trends may continue to move in 2010. The author of this video reviews in details the technical picture forming on the charts of the following commodities: soybeans, bean oil, corn, wheat, oats, silver, gold, palladium, platinum, sugar, cotton, orange juice, coffee, cocoa, crude oil, natural gas, heating oil and other trading instruments, including some of the currencies.

On the daily chart of a palladium a pattern has formed. This is a head-and-shoulders pattern. This patter shows that a downward breakout is possible from current support level (blue line) to target price $338.92 (bottom red line). The level of target price will become new support level. The top red line (shoulders level) indicates a stop-loss level in case pattern would not be confirmed. Click the image to enlarge it to a full-size screenshot:

This gold trading technical analysis video brings up the update of the current market situation with this popular commodity. The author of the video demonstrates an inverted Head and Shoulder chart pattern that formed on a daily chart since March 2008 and triggered a strong bullish trend in early October this year. The technical analysis suggests next long-term targets at $1,250-$1,300 per ounce. But the speculative and highly emotional nature of the bullish gold market can push it significantly above those levels.

In the last 10 months on the weekly silver chart the bearish Wolf Wave pattern has formed. In case of the resistance level (yellow line at 15.76) breakout pattern will be confirmed and the withdrawal downward approximately along the line of the gray arrow may be possible. Click to enlarge the image to a full-size screenshot: