. Daily Commodity Analysis - Gas up, oil falters, Silver shines; Copper eyes China.

Daily Commodity Analysis – Gas up, oil falters, Silver shines; Copper eyes China.

Daily Commodity Analysis – Gas up, oil falters, Silver shines; Copper eyes China.

24 Jan 2024

Introduction

U.S. natural gas futures break a six-session losing streak, rising as weather forecasts indicate warmer temperatures through early February. Oil prices fluctuate amid geopolitical tensions, demand concerns, and a stronger dollar. Silver (XAG/USD) shows positive momentum, climbing back above mid-$22.00s. Copper prices, driven by China’s stimulus measures, rebound from a two-month low but face challenges amid persistent economic concerns in the world’s largest copper importer.

Markets In Focus Today – NATURAL GAS

U.S. Natural Gas Futures Snap Losing Streak.

U.S. natural gas prices stage a late recovery and rise for the first time in six sessions as weather forecasts continue to show warmer temperatures through early February. “While more winter weather is likely to show up, once we get February on the calendar, cold weather forecasts become less and less of a factor for prices,” says Analyst in a note. The above-average storage draws expected for last week and this week would need to continue next month to lift prices significantly, “and the probability of such an occurrence is low.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 2.457 | Positive Crossover | Bullish
  • MA 20 : 2.595 | Negative Crossover | Bearish
  • MA 50 : 2.812 | Negative Crossover | Bearish

Simple :

  • MA 10 : 2.431 | Positive Crossover | Bullish
  • MA 20 : 2.595 | Negative Crossover | Bearish
  • MA 50 : 2.812 | Negative Crossover | Bearish

RSI (Relative Strength Index): 40.76 | Neutral Zone | Neutral

Stochastic   Oscillator : 84.44 | Buy Zone | Positive

Resistance   And Support Levels :

  • R1 : 2.610 R2 : 2.858
  • S1 : 2.392 S2 : 2.225

Overall Sentiment: Neutral Market Direction: Sell

Trade Suggestion: Limit Sell: 2.589 | Take Profit: 2.298 | Stop Loss: 2.792

BRENT CRUDE OIL

Oil prices wobble amid weak demand and a sturdy dollar.

Oil sawawed between modest falls and gains on Wednesday as traders weighed the impact on prices stemming from escalating geopolitical tensions, concerns over tepid demand, and a stronger dollar. U.S. crude stocks fell by 6.67 million barrels in the week ended Jan. 19, according to market sources citing American Petroleum Institute figures on Tuesday. Gasoline inventories, however, increased by 7.2 million barrels, stoking concerns over fuel demand in the world’s top oil consumer. A stronger U.S. dollar also weighed on oil prices as demand from buyers in other currencies ebbs as they have to pay more for dollar-denominated oil.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 79.14 | Positive Crossover | Bearish
  • MA 20 : 78.30 | Positive Crossover | Bearish
  • MA 50 : 77.89 | Positive Crossover | Bearish

Simple :

  • MA 10 : 79.16 | Positive Crossover | Bullish
  • MA 20 : 78.30 | Positive Crossover | Bullish
  • MA 50 : 77.89 | Positive Crossover | Bullish

RSI (Relative Strength Index): 57.73 | Buy Zone | Bullish

Stochastic   Oscillator : 65.13 | Buy Zone | Negative

Resistance   And Support Levels :

  • R1 : 79.61 R2 : 83.66
  • S1 : 77.35 S2 : 74.78

Overall Sentiment: Bullish Market Direction: Buy

Trade Suggestion: Stop Buy: 80.47 | Take Profit: 83.66 | Stop Loss: 78.75

SILVER

XAG/USD moves back above the mid-$22.00s, and flirts with weekly top.

Silver attracts some buyers for the second straight day and climbs back closer to the weekly top. The technical setup warrants caution before positioning for any meaningful appreciating move. A descending trend-line hurdle extending from the December swing high might cap further gains. Silver (XAG/USD) gained positive traction for the second straight day on Wednesday and recovered further from its lowest level since November 13, around the $21.95-$21.90 area touched earlier this week. The white metal builds on the intraday move-up through the first half of the European session and climbs to the top end of its weekly range, around the $22.60-$22.65 region in the last hour.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 22.49 | Positive Crossover | Bullish
  • MA 20 : 22.54 | Positive Crossover | Bullish
  • MA 50 : 22.85 | Negative Crossover | Bearish

Simple :

  • MA 10 : 22.45 | Positive Crossover | Bullish
  • MA 20 : 22.54 | Positive Crossover | Bullish
  • MA 50 : 22.85 | Negative Crossover | Bearish

RSI (Relative Strength Index): 53.19 | Buy Zone | Bullish

Stochastic   Oscillator : 98.39 | Buy Zone | Positive

Resistance   And Support Levels :

  • R1 : 22.79 R2 : 23.79
  • S1 : 21.96 S2 : 21.25

Overall Sentiment: Bullish Market Direction: Buy

Trade Suggestion : Limit Buy: 22.63 | Take Profit: 23.52 | Stop Loss: 22.05

COPPER

Copper prices edged lower after China-driven gains.

Reports of more planned stimulus measures in China helped copper prices rebound sharply from a near two-month low this week, amid growing hopes for an economic recovery in the world’s largest copper importer. Still, copper was also nursing a weak start to 2024, as a swathe of economic readings for December showed little improvement in Chinese economic growth. Fears of slowing Chinese demand were a key weight on copper prices over the past two years

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 3.819 | Positive Crossover | Bullish
  • MA 20 : 3.769 | Positive Crossover | Bullish
  • MA 50 : 3,791 | Positive Crossover | Bullish

Simple :

  • MA 10 : 3.812 | Positive Crossover | Bullish
  • MA 20 : 3.769 | Positive Crossover | Bullish
  • MA 50 : 3.791 | Positive Crossover | Bullish

RSI (Relative Strength Index): 67.98 | Buy Zone | Bullish

Stochastic   Oscillator : 100 | Buy Zone | Neutral

Resistance   And Support Levels :

  • R1 : 3.89 R2 : 3.95
  • S1 : 3.81 S2 : 3.74

Overall Sentiment: Bullish Market Direction: Buy

Trade Suggestion: Limit Buy: 3.830 | Take Profit: 3.901 | Stop Loss: 3.788

Elsewhere In The Commodity Market

Gold is up (0.17%) at 2032.23, Silver is up (1.41%) at 22.74, Palladium is up (1.66%) at 964.26, Platinum is up (0.92%) at 911.62, Brent Crude is up (0.45%) at 78.97, WTI Crude Oil up (0.78%) at 74.98 as of writing time.

Key Economic Events & Data Release Today:

(NZD) CPI (QoQ) (Q4) Actual 0.5%, Forecast 0.5%, Previous 1.8% at 03:15. (EUR) German Manufacturing PMI (Jan) Actual 45.4, Forecast 43.7, Previous 43.3 at 14:00. (CAD) BoC Interest Rate Decision Forecast 5.00%, Previous 5.00% at 20:15. (USD) Manufacturing PMI (Jan) Forecast 47.9, Previous 47.9 at 20:15. (CAD) BoC Monetary Policy Report at 20:30. (CAD) BoC Press Conference at 21:30.