. Daily Commodity Analysis - Natural Gas and Silver Trends Impacting Investment Decisions ($23+)

Daily Commodity Analysis – Natural Gas and Silver Trends Impacting Investment Decisions ($23+)

Daily Commodity Analysis – Natural Gas and Silver Trends Impacting Investment Decisions ($23+)

23 Oct 2023

Introduction:

In the natural gas market, recent data from CME Group reveals a continued increase in open interest and rising trading volume. This has contributed to further declines in natural gas prices. Additionally, in the silver market, XAG/USD remains stable above $23, supported by several positive factors. Furthermore, gold prices are aiming to reach a five-month high amid ongoing conflicts in the Middle East, while oil prices are being influenced by diplomatic developments in the Gaza conflict.

Natural Gas:

Door open extra declines near term.

Considering the recent data provided by CME Group concerning natural gas futures markets, open interest continued its upward trend for multiple days and surged by nearly 10,000 contracts on Friday. Similarly, volume registered its second consecutive increase, with a rise of approximately 28,100 contracts.

On Friday, the downward trajectory of Natural Gas prices continued, erasing nearly all the gains witnessed in the initial weeks of October. The daily decline was driven by an increase in open interest and trading volume, supporting the ongoing bearish trend. However, it’s worth noting that there is a significant level of support in the immediate vicinity around the $2.80 per MMBtu region.

Technical Overview :

Moving Averages:

Exponential:

  • MA 5: 2.88| Positive Crossover | Bullish
  • MA 20: 2.94| Negative Crossover | Bearish
  • MA 50: 3.04| Negative Crossover | Bearish

Simple:

  • MA 5: 2.88| Positive Crossover | Bullish
  • MA 20: 2.94| Negative Crossover | Bearish
  • MA 50: 3.09| Negative Crossover | Bearish

RSI (Relative Strength Index): 32.28 | Sell Zone | Bearish

Stochastic Oscillator: 61.77| Buy Zone | Positive

Resistance And Support Levels:

  • R1: 3.00 | R2: 3.20
  • S1: 2.84| S2: 2.60

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion: Stop Sell: 2.78 | Take Profit: 2.60 | Stop Loss: 2.93.

Silver:

XAG/USD stabilizes above $23, supported by multiple tailwinds

Silver prices are holding steady above the $23.00 mark, thanks to ongoing safe-haven demand. The overall market sentiment remains pessimistic due to Israel’s intentions to target Hamas’s military presence in Gaza. Furthermore, Federal Reserve’s Bostic has stated that while an economic slowdown is on the horizon, a full-blown recession is not expected.

In the late European trading session, the price of silver (XAG/USD) successfully breached the significant resistance level of $23.00. This precious metal maintains its strong position, primarily driven by escalating tensions in Gaza, stemming from the intensifying conflict between the Israeli military and Palestine’s armed group, which has heightened the demand for safe-haven assets.

Technical Overview :

Moving Averages:

Exponential:

  • MA 5: 23.22 | Negative Crossover | Bearish
  • MA 20: 22.96 | Positive Crossover | Bullish
  • MA 50: 22.62 | Positive Crossover | Bullish

Simple:

  • MA 5: 23.29 | Negative Crossover | Bearish
  • MA 20: 22.97 | Positive Crossover | Bullish
  • MA 50: 22.19 | Positive Crossover | Bullish

RSI (Relative Strength Index): 59.69 | Buy Zone | Bullish

Stochastic Oscillator: 35.41| Sell Zone | Negative

Resistance And Support Levels:

  • R1: 23.20 | R2: 24.34
  • S1: 22.34| S2: 21.38

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Stop Buy : 23.44 | Take Profit: 24.34 | Stop Loss: 22.82.

Elsewhere In the Commodity Market.

The price of gold is striving to regain a five-month high amidst the conflicts in the Middle East. Oil slips as investors watch diplomatic moves in Gaza war.

Gold down (0.15%) at 1978.98, Silver down (0.82%) at 23.15, Palladium down (1.34%) at 1084.50, Platinum down (0.35%) at 891.34, Brent Crude Oil down (0.23%) at 91.94, WTI Crude Oil down (0.35%) at 87.75 as of writing time.

Key Economic Events & Data Release Today:

No Major events today.