. Daily Commodity Analysis - Gas Prices Surge, Copper Rebounds Amid Chinese Demand.

Daily Commodity Analysis – Gas Prices Surge, Copper Rebounds Amid Chinese Demand.

Daily Commodity Analysis – Gas Prices Surge, Copper Rebounds Amid Chinese Demand.

29 Sep 2023

Introduction:

In the world of commodities, Natural Gas is showing potential for an upward trend as traders respond to recent market dynamics. Meanwhile, Copper prices are rebounding, buoyed by optimism surrounding China’s economic prospects. This report delves into the latest developments in these two key commodities and provides insights into other notable movements in the market.

Natural Gas:

Natural Gas has extra upside in store.

Following four straight daily losses on Thursday, traders added roughly 11K contracts to their open interest holdings, according to CME Group’s flash data for natural gas futures markets. However, volume decreased for a second session in a row, this time by about 11.2K contracts.

On Thursday, natural gas prices continued their dramatic weekly rise. The decision was made amid rising open interest, and it opens the possibility of another potential test of the crucial resistance area at the $3.00 per MMBtu mark in the very near future.

Technical Overview :

Moving Averages:

Exponential:

  • MA 5: 2.94| Negative Crossover | Bearish
  • MA 20: 2.90 | Positive Crossover | Bullish
  • MA 50: 2.84| Positive Crossover | Bullish

Simple:

  • MA 5: 2.95 | Negative Crossover | Bearish
  • MA 20: 2.89 | Positive Crossover | Bullish
  • MA 50: 2.83 | Positive Crossover | Bullish

RSI (Relative Strength Index): 62.19 | Buy Zone | Bullish

Stochastic Oscillator: 78.08| Buy Zone | Neutral

Resistance And Support Levels: 

  • R1: 2.97 | R2: 3.16
  • S1: 2.87| S2: 2.68


Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Stop Buy: 3.01 | Take Profit: 3.16 | Stop Loss: 2.92.

Copper:

Copper prices surge on China hopes.

With reduced pressure from the dollar, copper prices among industrial metals increased substantially on Friday, recouping some of their September losses.

Copper futures increased 0.7% to $3.7363 a pound and fell 2.3% in September, marking their second consecutive month of losses.

Copper was under significant pressure throughout the month due to worries about declining Chinese demand, but the red metal received some support from predictions that Chinese consumer spending and company activity will increase during the week-long mid-Autumn festival, which starts today.

Technical Overview :

Moving Averages:

Exponential:

  • MA 5: 3.71 | Positive Crossover | Bullish
  • MA 20: 3.69 | Positive Crossover | Bullish
  • MA 50: 3.71 | Positive Crossover | Bullish

Simple:

  • MA 5: 3.70 | Positive Crossover | Bullish
  • MA 20: 3.68 | Positive Crossover | Bullish
  • MA 50: 3.71 | Positive Crossover | Bullish

RSI (Relative Strength Index): 61.72 | Buy Zone | Bullish

Stochastic Oscillator: 100| Buy Zone | Positive

Resistance And Support Levels: 

  • R1: 3.75 | R2: 3.86
  • S1: 3.69| S2: 3.61

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Stop Buy: 3.78 | Take Profit: 3.86 | Stop Loss: 3.74.

Elsewhere In the Commodity Market.

Gold prices near 7-month low before inflation data. Oil is expected to increase by 2% this week on tight U.S. supply, and China demand. On Friday, silver experienced a significant uptick in price and continued its recovery from a two-week low.

Gold is up (0.45%) at 1873.12, Silver is up (1.23%) at 22.02, Palladium is up (0.57%) at 1274.74, Platinum is up (1.05%) at 914.00, Brent Crude Oil is up (0.35%) at 93.43, WTI Crude Oil up (0.55%) at 92.19 as of writing time.

Key Economic Events & Data Release Today:

(USD) Fed Chair Powell Speaks at 01:30.

(EUR) ECB President Lagarde Speaks at 13:10.