. Daily Commodity Analysis - Natural Gas plunges, Copper soars, Gold, Oil steady.

Daily Commodity Analysis – Natural Gas plunges, Copper soars, Gold, Oil steady.

Daily Commodity Analysis – Natural Gas plunges, Copper soars, Gold, Oil steady.

27 Dec 2023

Introduction:

In the commodities market, Natural Gas faces a 5.26% dip amid a warm December, signaling a bearish outlook for 2023. Despite a recent positive turn, declining prices align with bearish weather forecasts, suggesting subdued demand until December 30th, followed by potential growth in early January. Meanwhile, Copper prices rise on Wednesday, set for a 3% gain in 2023, driven by a weakened dollar. The market eyes a 2024 resurgence due to increased demand for electric vehicles and the global shift towards green energy. In other commodities, Gold stabilizes with rate cut hopes, while Oil remains steady with close monitoring of Red Sea developments.

Natural Gas:

Natural gas prices decline due to a less favorable weather outlook, diminishing trader optimism.

Amid unseasonably warm December weather, natural gas prices experienced a 5.26% decline on Tuesday, pointing towards a bearish conclusion for 2023 and subdued demand in early January.

Despite a positive turn last week that interrupted a six-week losing streak, natural gas prices are currently declining. This downturn is in line with unexpectedly bearish weather forecasts, indicating minimal demand until December 30th, followed by a shift to colder temperatures that may boost gas usage in early January.

Technical Overview:

Moving Averages:

Exponential:

  • MA 5: 2.469| Positive Crossover | Bullish
  • MA 20: 2.479| Positive Crossover | Bullish
  • MA 50: 2.534| Negative Crossover | Bearish

Simple:

  • MA 5: 2.436| Negative Crossover | Bearish
  • MA 20: 2.493| Positive Crossover | Bullish
  • MA 50: 2.486| Negative Crossover | Bearish

RSI (Relative Strength Index): 50.08| Buy Zone | Bullish

Stochastic Oscillator: 39.62| Sell Zone | Positive

Resistance And Support Levels:

  • R1: 2.506 | R2: 2.807
  • S1: 2.370| S2: 2.220

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Stop Buy: 2.569 | Take Profit: 2.807 | Stop Loss: 2.448.

Copper:

Copper prices advance, set for mild gains in 2023.

In the realm of industrial metals, copper prices saw an increase on Wednesday, prolonging recent gains fuelled by the weakening of the dollar, which had a positive impact on most commodity prices.

Despite experiencing a robust recovery in December, copper prices were on track for modest gains in 2023, approximately 3%, as worries about an economic deceleration in China, the leading importer, exerted downward pressure on prices.

However, the copper market holds the potential for a significant resurgence in 2024. The rising demand for electric vehicles, combined with a worldwide shift towards green energy, is anticipated to drive up the consumption of copper—a vital element in battery and electric technology.

Technical Overview:

Moving Averages:

Exponential:

  • MA 5: 3.896 | Positive Crossover | Bullish
  • MA 20: 3.884 | Positive Crossover | Bullish
  • MA 50: 3.850| Positive Crossover | Bullish

Simple:

  • MA 5: 3.898 | Positive Crossover | Bullish
  • MA 20: 3.888| Positive Crossover | Bullish
  • MA 50: 3.840| Positive Crossover | Bullish

RSI (Relative Strength Index): 54.42 | Buy Zone | Bullish

Stochastic Oscillator: 51.70| Buy Zone | Neutral

Resistance And Support Levels:

  • R1: 3.912 | R2: 4.021
  • S1: 3.831| S2: 3.748

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion:  Stop Buy: 3.939 | Take Profit: 4.021 | Stop Loss: 3.896.

Elsewhere In the Commodity Market.

Gold prices remain stable as robust gains are driven by early hopes of rate cuts. Oil maintains stability as developments in the Red Sea are closely monitored.

Gold is up (0.04%) at 2068.54, Silver is down (0.38%) at 24.11, Palladium is up (0.87%) at 1188.73, Platinum is up (0.46%) at 981.47, Brent Crude Oil is down (0.38%) at 80.56, WTI Crude Oil down (0.46%) at 75.18 as of writing time.

Key Economic Events & Data Release Today:

No Major key events for today.