. Daily Commodity Analysis - WTI, Corn surge, Gold, Silver await.

Daily Commodity Analysis – WTI, Corn surge, Gold, Silver await.

Daily Commodity Analysis – WTI, Corn surge, Gold, Silver await.

13 Feb 2024

Introduction

WTI oil prices surge towards $77.00 amid escalating Middle East tensions, fueled by Houthi strikes on a ship. Geopolitical concerns in the Israel-Hamas conflict heighten supply disruption fears. Meanwhile, US shale production may increase by 20,000 bpd in March. In the agriculture sector, corn closes higher, supported by increased weekly shipments, while gold and silver prices remain steady, awaiting US inflation data for rate cues.

Markets In Focus Today – CRUDE OIL

WTI rises towards $77.00 on escalated Middle East tension, Houthi strikes at a ship.

WTI price extends its gains on a threat of supply disruptions due to the Israel-Hamas conflict. Yemen’s Houthi rebels launched missiles at a ship headed for a port in Iran. US top shale-producing regions could increase output by 20,000 bpd to 9.7 million bpd in March. West Texas Intermediate (WTI) oil price extends its winning streak initiated on February 5, buoyed by heightened geopolitical tension in the Middle East. The price of Crude oil climbs towards $77.00 per barrel during the Asian session on Tuesday. Yemen’s Houthi rebels reportedly launched missiles at a ship headed for a port in Iran, resulting in minor damage to the vessel but no injuries to its crew, according to authorities.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 75.6741 | Positive Crossover | Bullish
  • MA 20 : 75.0692 | Positive Crossover | Bullish
  • MA 50 : 74.9993 | Positive Crossover | Bullish

Simple :

  • MA 10 : 74.9310 | Positive Crossover | Bullish
  • MA 20 : 75.2041 | Positive Crossover | Bullish
  • MA 50 : 73.3472 | Positive Crossover | Bullish

RSI (Relative Strength Index): 59.0643 | Buy Zone | Bullish

Stochastic   Oscillator : 69.4536 | Buy Zone | Positive

Resistance   And Support Levels :

  • R1 : 78.6054 R2 : 80.9659
  • S1 : 70.9639 S2 : 68.6034

Overall Sentiment: Bullish Market Direction: Buy

Trade Suggestion: Limit Buy: 76.69 | Take Profit: 79.03 | Stop Loss: 75.49

Wheat Futures

Corn Closed Off Highs but Still in Black.

Monday’s corn session ended the day 1 to 1 ½ cents higher to start the week. March futures printed a -1 ¼ to +3 ¾ cent range. USDA’s weekly inspection data had 880,074 MT of corn shipped during the week that ended 2/8. That was up from 645k MT the week prior and compares to 563k MT for the same week last year. The weekly update put the season’s total export at 17.19 MMT, from 13.11 MMT at the same time last season. The BA Grain Exchange cut their estimate of Argentine corn crop conditions, with 31% rated good or excellent vs. 34% last week, but 20% during last year’s drought.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 4.3349 | Negative Crossover | Bearish
  • MA 20 : 4.3887 | Negative Crossover | Bearish
  • MA 50 : 4.5269 | Negative Crossover | Bearish

Simple :

  • MA 10 : 4.3506 | Negative Crossover | Bearish
  • MA 20 : 4.3861 | Negative Crossover | Bearish
  • MA 50 : 4.5494 | Negative Crossover | Bearish

RSI (Relative Strength Index): 29.9170 | Sell Zone | Bearish

Stochastic   Oscillator : 9.4540 | Sell Zone | Positive

Resistance   And Support Levels :

  • R1 : 4.6002 R2 : 4.6768
  • S1 : 4.3518 S2 : 4.2752

Overall Sentiment: Bearish Market Direction: Sell

Trade Suggestion: Limit Sell: 480.45 | Take Profit: 460.67 | Stop Loss: 492.17

GOLD

Gold prices trade sideways, CPI data is awaited for more rate cues.

Gold prices kept to a tight range on Tuesday, remaining under pressure from the dollar as investors hunkered down before inflation data that is widely expected to factor into the Federal Reserve’s plans for interest rates. The yellow metal had fallen back into a $2,000 to $2,050 an ounce trade range over the past week, as traders began steadily phasing out expectations of early interest rate cuts by the Fed. A slew of Fed speakers also warned last week that the bank was in no hurry to cut interest rates early, amid fears of sticky inflation. This saw the dollar shoot up to three-month highs, which weighed on gold.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 2029.3026 | Negative Crossover | Bearish
  • MA 20 : 2030.8111 | Negative Crossover | Bearish
  • MA 50 : 2024.7334 | Positive Crossover | Bullish

Simple :

  • MA 10 : 2033.3564 | Negative Crossover | Bearish
  • MA 20 : 2028.1862 | Negative Crossover | Bearish
  • MA 50 : 2033.6556 | Negative Crossover | Bearish

RSI (Relative Strength Index): 47.8654 | Buy Zone | Bullish

Stochastic   Oscillator : 24.6139 | Sell Zone | Positive

Resistance   And Support Levels :

  • R1 : 2069.3797 R2 : 2087.5470
  • S1 : 2010.5670 S2 : 1992.3997

Overall Sentiment: Neutral Market Direction: Neutral

Trade Suggestion: Limit Sell: 2028.94 | Take Profit: 2015.77 | Stop Loss: 2040.59

SILVER

XAG/USD consolidates around $22.70 ahead of US Inflation data.

Silver price trades lackluster around $22.70 as the focus remains on US inflation data. Soft inflation data would uplift hopes of early rate cuts by the Fed. Silver price consistently faces pressure from a downward-sloping trend line from $24.60. Silver price (XAG/USD) trades back and forth in a narrow range around $22.70 in the late Asian session on Tuesday. The white metal struggles for a direction as investors await the United States Consumer Price Index (CPI) data for January, which will be published at 13:30 GMT.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 22.67 | Positive Crossover | Bullish
  • MA 20 : 22.48 | Positive Crossover | Bullish
  • MA 50 : 22.69 | Positive Crossover | Bullish

Simple :

  • MA 10 : 22.66 | Positive Crossover | Bullish
  • MA 20 : 22.48 | Positive Crossover | Bullish
  • MA 50 : 22.69 | Positive Crossover | Bullish

RSI (Relative Strength Index): 58.08 | Buy Zone | Bullish

Stochastic   Oscillator : 90.18 | Buy Zone | Neutral

Resistance   And Support Levels :

  • R1 : 22.90 R2 : 23.31
  • S1 : 22.41 S2 : 21.96

Overall Sentiment: Bullish Market Direction: Buy

Trade Suggestion: Limit Buy: 22.80 | Take Profit: 23.32 | Stop Loss: 22.50

Elsewhere In The Commodity Market

Gold is up (0.29%) at 2025.66, Silver is up (0.88%) at 22.85, Palladium is up (2.08%) at 913.17, Platinum is up (0.6%) at 897.00, Brent Crude Oil is down (0.05%) at 82.03, WTI Crude Oil up (0.07%) at 76.97 as of writing time.

Key Economic Events & Data Release Today:

(AUD) NAB Business Confidence (Jan) Actual 1, Previous –1 at 06:00. (GBP) Average Earnings Index +Bonus (Dec) Actual 5.8%, Forecast 5.6%, Previous 6.5% at 12:30. (USD) CPI (MoM) (Jan) Forecast 0.2%, Previous 0.3% at 19:00. (USD) Core CPI (MoM) (Jan) Forecast 0.3%, Previous 0.3% at 19:00.