. Daily Commodity Analysis - Oil and Copper Prices Slide Amid Global Concerns.

Daily Commodity Analysis – Oil and Copper Prices Slide Amid Global Concerns.

Daily Commodity Analysis – Oil and Copper Prices Slide Amid Global Concerns.

08 Nov 2023

Introduction:

In the commodity market, Brent Crude Oil struggles near a three-month low due to mounting concerns about dwindling demand. Oil prices dipped to their lowest point in over three months, focusing on easing supply concerns rather than potential Middle Eastern disruptions. Concurrently, China’s economic data adds to the uncertainty surrounding demand. Meanwhile, copper experiences a slight decline, influenced by Chinese economic worries, and gold prices remain under pressure ahead of Federal Reserve Chair Powell’s speech, while silver extends its three-day decline to a three-week low.

Brent Crude Oil:

Oil prices struggle around their lowest levels in three months as demand concerns mount.

On Wednesday, oil prices faced challenges following a drop to their lowest point in more than three months during the previous session. These challenges stem from apprehensions about diminishing demand in the top oil-consuming nations, the United States and China.

“The market is evidently displaying reduced apprehension regarding potential Middle Eastern supply disruptions, and its primary focus now lies on the alleviation of tight oil supply conditions,” commented Warren Patterson and Ewa Manthey, analysts at ING bank, in a communication to clients.

Data in China, the largest global importer of crude oil, has also cast uncertainties regarding the prospects for demand.

Technical Overview:

Moving Averages:

Exponential:

  • MA 5: 82.38| Negative Crossover | Bearish
  • MA 20: 84.71| Negative Crossover | Bearish
  • MA 50: 86.48| Negative Crossover | Bearish

Simple:

  • MA 5: 82.45| Negative Crossover | Bearish
  • MA 20: 84.95| Negative Crossover | Bearish
  • MA 50: 87.48| Negative Crossover | Bearish

RSI (Relative Strength Index): 31.72 | Selling Zone | Bearish

Stochastic Oscillator: 3.82| Sell Zone | Negative

Resistance And Support Levels:

  • R1: 83.71 | R2: 87.62
  • S1: 81.26| S2: 78.16

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion: Stop Sell: 80.37 | Take Profit: 78.16 | Stop Loss: 82.08.

Copper:

Copper creeps lower amid China concerns.

In the realm of industrial metals, copper prices saw a modest decline on Wednesday, continuing their recent downtrend in the wake of discouraging economic data from China, the world’s largest copper importer. Following the underwhelming Chinese trade data released on Tuesday, attention has now shifted to Thursday’s inflation reports from the country, with hopes for indications of increased expenditure.

Investors in copper found some solace in reports that Chinese authorities had conducted meetings with several prominent property developers within the nation to assess their financial health, potentially paving the way for additional policy support in the real estate sector.

Technical Overview:

Moving Averages:

Exponential:

  • MA 5: 3.683 | Negative Crossover | Bearish
  • MA 20: 3.673 | Positive Crossover | Bullish
  • MA 50: 3.650 | Positive Crossover | Bullish

Simple:

  • MA 5: 3.682 | Positive Crossover | Bullish
  • MA 20: 3.677 | Positive Crossover | Bullish
  • MA 50: 3.630 | Positive Crossover | Bullish

RSI (Relative Strength Index): 55.85 | Buy Zone | Bullish

Stochastic Oscillator: 47.81| Buy Zone | Positive

Resistance And Support Levels:

  • R1: 3.692 | R2: 3.784
  • S1: 3.628| S2: 3.537

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Stop Buy: 3.718 | Take Profit: 3.784 | Stop Loss: 3.677.

Elsewhere In the Commodity Market.

Gold prices are experiencing downward pressure as investors closely watch for Federal Reserve Chair Powell’s upcoming speech. For the third consecutive day, silver continues to decline, reaching a level not seen in over three weeks on Wednesday.

Gold down (0.12%) at 1966.14, Silver down (0.42%) at 22.52, Palladium down (3.65%) at 1016.38, Platinum down (0.46%) at 886.19, Brent Crude Oil up (0.07%) at 81.67, WTI Crude Oil down (0.08%) at 77.31 as of writing time.

Key Economic Events & Data Release Today:

(EUR) German CPI (MoM) (Oct) Actual 0.0%, Forecast 0.0%, Previous 0.3% at 12:30.

(GBP) BoE Gov Bailey Speaks at 15:00

(EUR) Retail Sales (MoM) (Sep) Forecast –0.2%, Previous –1.2% at 15:30.

(USD) Fed Chair Powell Speaks at 19:45.