. Daily Commodity Analysis - China's signals shake copper, global market braces.

Daily Commodity Analysis – China’s signals shake copper, global market braces.

Daily Commodity Analysis – China’s signals shake copper, global market braces.

22 Nov 2023

Introduction:

In the commodities landscape, Wheat futures rose by 2.3% ahead of the Thanksgiving holiday, while copper prices decline from a two-month high, awaiting economic signals from China. Gold prices hit $2,000 amid considerations of the Federal Reserve’s interest rate outlook. Meanwhile, oil prices show minimal movement, with the market anticipating diverse news on the supply front.

Wheat Futures:

Wheat Futures Rise Ahead of the Holiday.

On Tuesday, wheat futures for March delivery climbed by 2.3% to reach $5.83 1/2 per bushel on the Chicago Board of Trade. Traders adjusted their positions in wheat, preparing for the upcoming Thanksgiving holiday on Thursday.

Although CBOT wheat initially trailed other grains in today’s session, it reversed its performance and ended up leading the grains complex in anticipation of Thanksgiving Thursday. Donna Hughes from StoneX mentioned, “Wheat is experiencing a technical rebound following recent selling pressure.”

Technical Overview:

Moving Averages:

Exponential:

  • MA 5: 593.84| Positive Crossover | Bullish
  • MA 20: 609.86| Negative Crossover | Bearish
  • MA 50: 634.84| Negative Crossover | Bearish

Simple:

  • MA 5: 592.25| Positive Crossover | Bullish
  • MA 20: 611.78| Negative Crossover | Bearish
  • MA 50: 642.87| Negative Crossover | Bearish

RSI (Relative Strength Index): 31.05| Selling Zone | Bearish

Stochastic Oscillator: 33.1| Sell Zone | Positive

Resistance And Support Levels:

  • R1: 610.56 | R2: 626.71
  • S1: 591.61| S2: 572.65

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion: Stop Sell: 586.69 | Take Profit: 572.65 | Stop Loss: 596.52.

Copper:

Copper falls from a two-month high as fresh indications from China are expected.

Copper prices declined from their two-month highs on Wednesday within the realm of industrial metals, as traders awaited further economic signals from China, the leading importer.

Media reports suggested that Beijing might introduce additional stimulus measures, particularly for the property sector. However, traders are now awaiting concrete actions from the Chinese government.

Additionally, there’s keen attention on potential disruptions in the global copper supply due to significant mine closures in Peru and Panama, which are anticipated to impact markets in the upcoming months.

Technical Overview:

Moving Averages:

Exponential:

  • MA 5: 3.787 | Negative Crossover | Bearish
  • MA 20: 3.744 | Positive Crossover | Bullish
  • MA 50: 3.700| Positive Crossover | Bullish

Simple:

  • MA 5: 3.797 | Negative Crossover | Bearish
  • MA 20: 3.738| Positive Crossover | Bullish
  • MA 50: 3.690| Positive Crossover | Bullish

RSI (Relative Strength Index): 63.27 | Buy Zone | Bullish

Stochastic Oscillator: 64.15| Buy Zone | Negative

Resistance And Support Levels:

  • R1: 3.790 | R2: 3.898
  • S1: 3.718| S2: 3.647

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Stop Buy: 3.814 | Take Profit: 3.898 | Stop Loss: 3.764.

Elsewhere In the Commodity Market.

Gold prices reach the $2,000 mark as markets assess the Federal Reserve’s interest rate outlook. Oil prices exhibited minimal movement in Asian trade on Wednesday, with the market anticipating potentially mixed news on the supply front.

Gold up (0.01%) at 1998.34, Silver up (0.06%) at 23.74, Palladium down (0.79%) at 1068.37, Platinum down (0.04%) at 932.72, Brent Crude Oil down (0.21%) at 82.25, WTI Crude Oil down (0.21%) at 77.58 as of writing time.

Key Economic Events & Data Release Today:

(USD) FOMC Meeting Minutes at 00:30.

(USD) Initial Jobless Claims Forecast 225K, Previous 231K at 19:00.

(CAD) Manufacturing Sales (MoM) Previous 0.4% at 19:00.

(USD) Core Durable Goods Order (MoM) (Oct) Forecast 0.1%, Previous 0.5% at 19:00.

(USD) Crude Oil Inventories Forecast 0.900M, Previous 3.592M at 21:00.