. Daily Commodity Analysis - Natural Gas Prices Decline While Silver's Performance Remains Unpredictable

Daily Commodity Analysis – Natural Gas Prices Decline While Silver’s Performance Remains Unpredictable

Daily Commodity Analysis – Natural Gas Prices Decline While Silver’s Performance Remains Unpredictable

16 Oct 2023

Introduction:

XNG/USD flirts with last week’s swing low, trading below $3.4500 for the third consecutive day, retreating from a recent multi-month high. While technical indicators Favor bullish sentiment and potential dip-buying, a break below the $3.0650 support-turned-resistance is crucial. The natural gas price currently hovers around $3.4400 during the Asian session, down over 1%. Caution is advised considering this technical setup. In the silver market, XAG/USD holds above 38.2% Fibonacci pivot support after reaching a two-week high, but persistent weakness below $22.30 may lead to further intraday losses. Meanwhile, developments in the Middle East impact gold, oil, and copper prices in the commodity market.

Natural Gas:

XNG/USD flirts with last Week’s swing low, below $3.4500.

For the third day in a row, the price of natural gas declines and moves away from a multi-month high.

Bulls are favored by the technical setup, which also supports the possibility of some dip buying emerging.

To offset the favorable picture, a break below the $3.0650 resistance-turned support is required.

The price of natural gas continues to decline from a nine-month high last week, hovering around $3.6350 to $3.6400, and on Monday it is still under some selling pressure for the third straight day. The XNG/USD pair is down more than 1% during the Asian session, trading near $3.4400, although given the technical setup, it is advisable to exercise caution before putting money at risk of further declines.

Technical Overview :

Moving Averages:

Exponential:

  • MA 5: 3.18| Negative Crossover | Bearish
  • MA 20: 3.23| Negative Crossover | Bearish
  • MA 50: 3.11| Positive Crossover | Bullish

Simple:

  • MA 5: 3.18 | Negative Crossover | Bearish
  • MA 20: 3.31| Negative Crossover | Bearish
  • MA 50: 3.08| Positive Crossover | Bullish

RSI (Relative Strength Index): 43.48 | Neutral Zone | Neutral

Stochastic Oscillator: 1.37| Sell Zone | Neutral

Resistance And Support Levels:

  • R1: 3.28 | R2: 3.44
  • S1: 3.11| S2: 2.85

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion: Stop Sell: 3.04 | Take Profit: 2.85 | Stop Loss: 3.17.

Silver:

XAG/USD trades near the daily low but holds above 38.2% Fibonacci pivot support.

After making significant gains on Friday, silver erases some of those gains and reaches a two-week high.

The technical configuration encourages the possibility that some dip-buying may appear at lower prices.

If there is persistent weakening below the $22.30 region, more intraday losses may occur.

Beginning the week on a down note, silver (XAG/USD) somewhat undoes Friday’s robust advance to the $22.80 area, or a two-week high. Through the first part of the European session, the white metal keeps its offered tone. It is currently trading slightly over the mid-$22.00s, down more than 0.70% for the day.

Technical Overview :

Moving Averages:

Exponential:

  • MA 5: 22.57 | Negative Crossover | Bearish
  • MA 20: 22.18 | Positive Crossover | Bullish
  • MA 50: 22.17 | Positive Crossover | Bullish

Simple:

  • MA 5: 22.66 | Negative Crossover | Bearish
  • MA 20: 22.09 | Positive Crossover | Bullish
  • MA 50: 21.99 | Positive Crossover | Bullish

RSI (Relative Strength Index): 60.92 | Buy Zone | Bullish

Stochastic Oscillator: 89.62| Buy Zone | Neutral

Resistance And Support Levels:

  • R1: 22.59 | R2: 23.64
  • S1: 21.73| S2: 20.19

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Stop Buy : 22.74 | Take Profit: 23.64 | Stop Loss: 22.18.

Elsewhere In the Commodity Market.

Gold price declines as safe haven rally pauses, Middle East tensions in focus. Oil price ease as investors assess risks of Israel-Hamas war. Copper prices rose sharply Monday after coming close to a five-month low in the prior week.

Gold down (1.02%) at 1912.79, Silver down (0.72%) at 22.54, Palladium up (0.3%) at 1152.00, Platinum up (0.73%) at 885.96, Brent Crude Oil down (0.19%) at 90.72, WTI Crude Oil down (0.05%) at 86.31 as of writing time.

Key Economic Events & Data Release Today:

(USD) FOMC Member Harker Speaks at 20:00.

(GBP) BoE MPC Member Pill Speaks at 14:00.