Commodity Blog

Posts Tagged ‘price patterns’

Judging from the chart’s structure and Japanese candlestick patterns, the author of this commodity forecast video offers his vision of the future of gold trading. The bottom formed last week was a pivotal point on the daily chart. It’s a lower low that’s usually followed by lower high. Traders may expect a top to form somewhere between $1,215.00 and $1,235.00, before the gold will be able to decline farther.

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.

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:

Analysts forecast that gold priced in euro will continue to hit new highs. When price will reach its previous peak a cup and handle pattern may occur as investors start selling, causing some decline in price. After that price tend to rise greatly. Gold rose to 836.98 euro per ounce, an all-time record, on March 2nd.

Copper scrap discount to New York-listed futures declined by half in two months on deficit of used metal. Demand for the copper is rebounding on speculation that economic recovery will increase consumption. In the same time, scrap copper becoming scarcer because of harsh winter in the U.S. as snow hampers collection of scarp. May delivery for copper shrunk 0.3 percent to $3.4245 per pound by 11:17 on NYMEX.

Sugar dropped after the dollar gained, cutting appeal of some riskier assets. The greenback gained 0.7 percent versus a basket of six major currencies. The rising dollar puts some commodities under pressure. March futures for raw-sugar delivery slid $0.0014 (0.5 percent) to $0.2762 per pound as of 9:48 on ICE.

Hog futures reached the nine-months high as rising demand for the meat pushed the U.S. wholesale-pork prices to the record in 15 months. Wholesale pork climbed 8.4 percent to $0.7305 per pound yesterday, the highest level since October 2008. Analysts say that historical price patterns show the possibility for wholesale pork to reach $0.75 per pound before going down. April futures for hog settlement added $0.0065 (0.9 percent) to $0.734 per pound by 11:00 on the Chicago Mercantile Exchange.

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:

On the daily chart of the February sugar futures a pattern has formed. It’s a symmetrical triangle with its base near the end of September and its apex near the beginning of December. The pattern signals about the trend’s consolidation trend near the price level of 23.00. A pattern breakout is possible in any direction, with a following strong, but short-term, rally. A daily close significantly above or below the triangle’s borders may serve as a proof of 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 silver, please, feel free to reply below.

This video takes a closer video at such popular and high-probability price chart patterns in the commodity markets as 1-2-3 pattern and bull flags. Both of them are quite easy to spot and analyze. Watch the video for more details on how to actually do it and how to trade when you see these price patterns.