TECHNICAL ANALYSIS – COMMODITIES:
- Gold prices digesting losses near $1800/oz after sharp reversal lower
- Crude oil prices idling at chart resistance, trend bias favors weakness
- Copper prices retesting the underside of just-broken support levels
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GOLD (XAU/USD)
Gold prices are in digestion mode having erased close to two weeks of gains in a single day as US markets reopened after a holiday. Familiar inflection area support is back in play, with a daily close below the lower bound at 1787.37 eyeing the next key hurdle at 1755.50.
Resistance runs up into 1834.14. Securing a foothold above that – with confirmation on a daily closing basis – may set the stage for a push into a minor barrier at 1870.75, followed by another foray above the $1900/oz figure.
Gold daily chart created with TradingView
CRUDE OIL (WTI)
Crude oil prices are struggling at the $70/bbl figure, marked by the confluence of a downward-sloping trend line and a prior inflection zone. Securing a daily close above this barrier would neutralize near-term selling pressure, setting the stage for a run into resistance at 72.78.
The lower bound of near-term support looks to be at 66.35. A break below that – again, with confirmation on a daily closing basis – may clear the way to challenge downside hurdles at 63.53 and 61.56.
Crude oil daily chart created with TradingView
COPPER (COMEX)
Copper prices have found their own confluent resistance, marked by former supports at overlapping uptrend barriers (one from March 2020, the other from June 2021) and a well-defined inflection zone. Securing an upside break would amount to a daily close above 4.4620. Resistance follows at 4.6275.
Initial swing low support is at 4.2060. A turn back below that may find its way to probing back below the 4.00 figure.
Copper daily chart created with TradingView
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--- Written by Ilya Spivak, Head Strategist, APAC at DailyFX.com
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