. Daily Commodity Analysis - Gas Plunge, Silver Low, Futures Surge

Daily Commodity Analysis – Gas Plunge, Silver Low, Futures Surge

Daily Commodity Analysis – Gas Plunge, Silver Low, Futures Surge

09 Nov 2023

Introduction:

In the commodity market, Natural gas prices continue to slide further, with the recent downward trend likely to persist. A sustained move above $3.00 per MMBtu could signal a pause in the correction. Silver price falls to a multi-week low and remains vulnerable to further decline. Gold prices also fell to a three-week low, while oil prices rebounded.

Natural Gas:

Extra losses in store near term.

The number of open contracts in natural gas futures markets continued to rise on Wednesday, reaching a new high of nearly 16,000 contracts, according to preliminary data from CME Group. This increase follows a three-day streak of rising trade volumes, which reached approximately 43,300 contracts on Wednesday.

Natural gas prices tumbled further on Wednesday, extending the recent correction amidst increasing open interest and trading volume. This suggests that the downtrend is likely to persist in the near term, with the key $3.00 per MMBtu support level providing a potential near-term floor.

Technical Overview:

Moving Averages:

Exponential:

  • MA 5: 3.129| Negative Crossover | Bearish
  • MA 20: 3.256| Negative Crossover | Bearish
  • MA 50: 3.271| Negative Crossover | Bearish

Simple:

  • MA 5: 3.114| Positive Crossover | Bullish
  • MA 20: 3.118| Negative Crossover | Bearish
  • MA 50: 3.280| Negative Crossover | Bearish

RSI (Relative Strength Index): 36.92 | Selling Zone | Bearish

Stochastic Oscillator: 11.76| Sell Zone | Positive

Resistance And Support Levels:

  • R1: 3.307 | R2: 3.520
  • S1: 3.114| S2: 2.884

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion: Stop Sell: 3.056 | Take Profit: 2.884 | Stop Loss: 3.192.

Silver:

XAG/USD struggles near the multi-week low, and seems vulnerable to slide further.

Silver prices continued to face downward pressure on Thursday, marking the fourth consecutive day of losses. The prevailing technical indicators favor bearish traders and suggest the potential for further declines. A sustained move above the $23.60-70 resistance level is needed to dispel the negative outlook.

Silver (XAG/USD) succumbed to renewed selling pressure after briefly testing the $22.65 level, extending its losing streak to a fourth day on Thursday. The white metal continued its downward trajectory throughout the European session, dipping to near a three-week low of $22.35 touched earlier in the day.

Technical Overview:

Moving Averages:

Exponential:

  • MA 5: 22.52 | Negative Crossover | Bearish
  • MA 20: 22.78 | Negative Crossover | Bearish
  • MA 50: 22.81 | Negative Crossover | Bearish

Simple:

  • MA 5: 22.50 | Negative Crossover | Bearish
  • MA 20: 22.85 | Negative Crossover | Bearish
  • MA 50: 22.96 | Negative Crossover | Bearish

RSI (Relative Strength Index): 38.41 | Sell Zone | Bearish

Stochastic Oscillator: 16.02| Sell Zone | Neutral

Resistance And Support Levels:

  • R1: 22.89 | R2: 23.57
  • S1: 22.35| S2: 21.56

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion: Stop Sell: 22.16 | Take Profit: 21.56 | Stop Loss: 22.57.

Elsewhere In the Commodity Market.

Gold prices sank to their lowest level in over three weeks on Thursday, continuing a string of recent declines. Oil prices rebounded on Thursday, regaining some ground after plunging to near four-month lows in the previous session.

Gold down (0.15%) at 1946.57, Silver down (0.41%) at 22.42, Palladium down (1.22%) at 1038.36, Platinum down (0.03%) at 865.14, Brent Crude Oil up (0.97%) at 80.31, WTI Crude Oil up (0.93%) at 76.03 as of writing time.

Key Economic Events & Data Release Today:

(CNY) CPI (MoM) (Oct) Actual –0.1%, Forecast 0.0%, Previous 0.2% at 07:00.

(USD) Initial Jobless Claims Forecast 215K, Previous 217K at 19:00.

(CAD) BoC Senior Deputy Governor Roger Speaks at 22:15.

(USD) ECB President Lagarde Speaks at 23:00