. Daily Commodity Analysis - Natural Gas and Silver Markets

Daily Commodity Analysis – Natural Gas and Silver Markets.

Daily Commodity Analysis – Natural Gas and Silver Markets.

21 Nov 2023

Introduction:

In the commodities landscape, Natural Gas faces potential further losses as indicated by a consecutive increase in open interest but declining trading volume. Meanwhile, Silver sees a dip from its two-month peak, maintaining a bullish bias. In the broader commodity market, Oil futures declined, contrasting with Gold’s strong positive momentum, hitting a two-week high.

Natural Gas:

Natural Gas further loss on cards.

considering the latest data from CME Group regarding natural gas futures markets, open interest recorded a second consecutive increase on Friday, rising by approximately 23.6K contracts. Conversely, trading volume resumed its decline, decreasing by nearly 26K contracts, partially offsetting the previous daily increase.

Natural gas prices continued their corrective decline on Friday, marked by an increase in open interest. This downward movement suggests the potential for further losses in the immediate future. Conversely, a key support zone is identified at the critical 200-day SMA, currently positioned at $2.607 per MMBtu.

Technical Overview:

Moving Averages:

Exponential:

  • MA 5: 2.897| Negative Crossover | Bearish
  • MA 20: 3.008| Negative Crossover | Bearish
  • MA 50: 3.110| Negative Crossover | Bearish

Simple:

  • MA 5: 2.886| Negative Crossover | Bearish
  • MA 20: 3.047| Negative Crossover | Bearish
  • MA 50: 3.187| Negative Crossover | Bearish

RSI (Relative Strength Index): 34.84| Selling Zone | Bearish

Stochastic Oscillator: 7.42| Sell Zone | Positive

Resistance And Support Levels:

  • R1: 3.003 | R2: 3.216
  • S1: 2.871| S2: 2.584

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion: Stop Sell: 2.777 | Take Profit: 2.584 | Stop Loss: 2.933.

Silver:

XAG/USD continues to decline from its more than two-month peak, with a bullish bias.

Silver experiences a slight decline, moving further away from the two-month peak reached last Friday. The technical configuration suggests the potential for dip-buying at lower levels. To confirm the positive bias, a sustained breakthrough of a descending trend line is required.

Silver (XAG/USD) continues the pullback initiated on Friday from the $24.15 zone, which marked its highest point since September 4. The precious metal is facing selling pressure as the new week begins.

Technical Overview:

Moving Averages:

Exponential:

  • MA 5: 23.62 | Positive Crossover | Bullish
  • MA 20: 23.83 | Positive Crossover | Bullish
  • MA 50: 23.10| Positive Crossover | Bullish

Simple:

  • MA 5: 23.57 | Positive Crossover | Bullish
  • MA 20: 23.31| Positive Crossover | Bullish
  • MA 50: 22.98| Positive Crossover | Bullish

RSI (Relative Strength Index): 60.87 | Buy Zone | Bullish

Stochastic Oscillator: 25.18| Sell Zone | Neutral

Resistance And Support Levels:

  • R1: 23.76 | R2: 24.78
  • S1: 23.19| S2: 22.50

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Stop Buy: 24.07 | Take Profit: 24.78 | Stop Loss: 23.62.

Elsewhere In the Commodity Market.

Oil futures experienced a decline on Tuesday, reversing the significant gains observed in the preceding two sessions. Gold prices exhibit robust positive momentum on Tuesday, reaching a level surpassing a two-week high.

Gold down (0.19%) at 1977.06, Silver down (0.64%) at 23.54, Palladium up (0.1%) at 1058.06, Platinum up (0.56%) at 902.64, Brent Crude Oil up (0.67%) at 81.13, WTI Crude Oil up (0.71%) at 76.59 as of writing time.

Key Economic Events & Data Release Today:

(GBP) BoE Gov Bailey Speaks at 00:15.

(AUD) RBA Meeting Minutes at 06:00.

(CAD) Core CPI (MoM) (Oct) Previous –0.1% at 19:00.

(USD) Existing Home Sales (Oct) Forecast 3.90M, Previous 3.96M at 20:30.

(EUR) ECB President Lagarde Speaks at 21:30.