. Daily Commodity Analysis - Commodity Markets React, Await Economic Signals.

Daily Commodity Analysis – Commodity Markets React, Await Economic Signals.

Daily Commodity Analysis – Commodity Markets React, Await Economic Signals.

28 Feb 2024

Introduction

Natural Gas prices surge over 4% in the US trading session, driven by robust demand for LNG vessels. Gaztransport & Technigaz’s optimistic outlook boosts the market, while geopolitical tensions ease as European leaders downplay the risk of escalation in Ukraine. WTI oil prices decline to $78.30 amid concerns over OPEC+ extending voluntary output cuts, impacting global economic growth. Gold prices remain flat as fears of higher U.S. interest rates persist, with copper prices dipping ahead of China’s PMI data release.

Markets In Focus Today – NATURAL GAS

Natural Gas jumps over 4% on LNG vessel demand remaining bullish.

Natural Gas prices jump in the US trading session. Traders are seeing gas prices higher with demand for LNG vessels soaring. The US Dollar Index consolidates below 104.00 though jumps higher for this Tuesday. Natural Gas (XNG/USD) is soaring higher in the US trading session after an upbeat outlook from ‘Gaztransport & Technigaz’. The French company is a leading designer of storage tanks and reported that its order book was filled with over 450 orders against a 400 estimate. Meanwhile, on the geopolitical front, comments from French President Emmanuel Macron could quickly defused by German Prime Minister Olaf Scholz and NATO Secretary General Jens Stoltenberg saying that European boots on the ground is not an option. This means the situation in Ukraine is not about to escalate further with NATO remaining sidelined.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 1.7623 | Negative Crossover | Bearish
  • MA 20 : 1.8848 | Positive Crossover | Bullish
  • MA 50 : 2.1749 | Positive Crossover | Bullish

Simple :

  • MA 10 : 1.7126 | Negative Crossover | Bearish
  • MA 20 : 1.8624 | Positive Crossover | Bullish
  • MA 50 : 2.3006 | Positive Crossover | Bullish

RSI (Relative Strength Index): 52.09 | Buy Zone | Bullish

Stochastic   Oscillator : 94.25 | Buy Zone | Neutral

Resistance   And Support Levels :

  • R1 : 3.0654 R2 : 3.3340
  • S1 : 2.1960 S2 : 1.9274

Overall Sentiment: Neutral Market Direction: Buy

Trade Suggestion: Limit Buy: 1.76 | Take Profit: 2.01 | Stop Loss: 1.63

CRUDE OIL

WTI edges lower to $78.30 following reports of OPEC+ extending voluntary oil output cuts.

WTI price depreciates as OPEC+ could extend voluntary oil output cuts into Q2.Geopolitical supply risks in the Middle East help to offset the concerns about global oil demand.API Weekly Crude Oil Stock increased to 8.428 million barrels from the previous 7.168 million barrels. West Texas Intermediate (WTI) oil prices decline after two consecutive days of gains, trading around $78.30 per barrel during the Asian session on Wednesday. The oil market is facing challenges due to higher borrowing costs, which are dampening global economic growth and subsequently reducing oil demand. Additionally, uncertainty persists regarding the outcome of ceasefire talks between Israel and Hamas, while Iran-backed Houthis continue to target civilian shipping vessels in the Red Sea.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 77.7663 | Positive Crossover | Bullish
  • MA 20 : 77.0389 | Positive Crossover | Bullish
  • MA 50 : 76.0769 | Positive Crossover | Bullish

Simple :

  • MA 10 : 78.1150 | Positive Crossover | Bullish
  • MA 20 : 76.5924 | Positive Crossover | Bullish
  • MA 50 : 74.8881 | Positive Crossover | Bullish

RSI (Relative Strength Index): 57.0256 | Buy Zone | Bullish

Stochastic   Oscillator : 72.1579 | Buy Zone | Neutral

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: 79.27 | Take Profit: 82.20 | Stop Loss: 77.73

GOLD

Gold prices muted as rate fears keep traders on the sidelines.

Gold prices moved in a flat-to-low range on Wednesday, extending their recent run of muted performance as anxiety over higher-for-longer U.S. interest rates persisted ahead of key economic readings. The yellow metal remained squarely within a $2,000 to $2,050 trading range established over the past month, as any upside in gold was largely limited by a string of Federal Reserve warnings that the bank was in no hurry to begin trimming rates early in 2024. Strength in the dollar, which remained near three-month highs, also pressured gold prices. Still, gold prices also remained firm above the key $2,000 an ounce support level, indicating that fears of a global economic slowdown and geopolitical tensions in Russia and the Middle East were feeding some safe-haven demand for the yellow metal.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 2025.6925 | Negative Crossover | Bearish
  • MA 20 : 2024.9669 | Negative Crossover | Bearish
  • MA 50 : 2022.8565 | Positive Crossover | Bullish

Simple :

  • MA 10 : 2023.4358 | Negative Crossover | Bearish
  • MA 20 : 2024.3159 | Negative Crossover | Bearish
  • MA 50 : 2033.4758 | Negative Crossover | Bearish

RSI (Relative Strength Index): 51.4415 | Buy Zone | Bullish

Stochastic   Oscillator : 78.0802 | Buy Zone | Negative

Resistance   And Support Levels :

  • R1 : 2069.3814 R2 : 2087.5486
  • S1 : 2010.5686 S2 : 1992.4014

Overall Sentiment: Neutral  Market Direction: Sell

Trade Suggestion: Limit Sell: 2031.09 | Take Profit: 2021.68 | Stop Loss: 2037.93

COPPER

Copper prices dip, China PMIs awaited.

Among industrial metals, copper futures expiring in March fell 0.4% to $3.8390 a pound. The red metal saw a strong run-up in recent weeks on optimism over more stimulus measures in top importer China. But this rally will be tested on Friday with the release of closely-watched purchasing managers index data from the country, which is expected to provide more cues on the state of business activity through February.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 3.83 | Negative Crossover | Bearish
  • MA 20 : 3.85 | Negative Crossover | Bearish
  • MA 50 : 3.78 | Positive Crossover | Bullish

Simple :

  • MA 10 : 3.83 | Negative Crossover | Bearish
  • MA 20 : 3.85 | Negative Crossover | Bearish
  • MA 50 : 3.78 | Positive Crossover | Bullish

RSI (Relative Strength Index): 43.79 | Buy Zone | Bullish

Stochastic   Oscillator : 6.4 | Sell Zone | Negative

Resistance   And Support Levels :

  • R1 : 3.87 R2 : 3.94
  • S1 : 3.80 S2 : 3.71

Overall Sentiment: Bullish Market Direction: Sell

Trade Suggestion: Stop Sell: 3.78 | Take Profit: 3.71 | Stop Loss: 3.84

Elsewhere In The Commodity Market

Gold is down (0.09%) at 2028.23, Silver is down (0.38%) at 22.35, Palladium is down (0.99%) at 926.81, Platinum is down (0.24%) at 884.74, Brent Crude Oil is down (0.53%) at 82.22, WTI Crude Oil down (0.55%) at 78.42 as of writing time.

Key Economic Events & Data Release Today:

(NZD) RBNZ Interest Rate Decision Actual 5.50%, Forecast 5.50%, Previous 1.3% at 06:30. (USD) GDP (QoQ) (Q4) Forecast 3.3%, Previous 4.9% at 19:00. (USD) Crude Oil Inventories Forecast 3.100M, Previous 3.514M at 21:00.