. Daily Commodity Analysis - Oil Prices Stable, Copper Recovers from Lows

Daily Commodity Analysis – Oil Prices Stable, Copper Recovers from Lows

Daily Commodity Analysis – Oil Prices Stable, Copper Recovers from Lows

24 Oct 2023

Introduction:

In the commodity market, Brent Crude Oil prices remained relatively stable amidst a wave of weak economic data. On the previous day, both major oil benchmarks experienced a decline of over 2%, coinciding with increased diplomatic efforts in the oil-rich Middle East to de-escalate the conflict between Israel and Hamas. Additionally, copper prices showed a modest recovery from a one-year low, partly due to discussions between U.S. and Chinese officials, although concerns about China’s property market continue to limit significant price gains. Meanwhile, gold prices exhibited a mixed performance as a rally in yields cooled, with a keen focus on a barrage of upcoming U.S. economic data.

Brent Crude Oil:

Oil prices are broadly stable amid the flurry of weak economic data.

Oil prices remained relatively unchanged on Tuesday, steadying after a recent decline. This followed the release of discouraging economic data from Germany, the broader Eurozone, and the UK, which painted a negative outlook and has the potential to impact oil demand negatively.

Both major oil benchmarks experienced a decline of over 2% on Monday. This drop in oil prices coincided with increased diplomatic efforts in the Middle East, a region that serves as a major source of oil supply, as attempts were made to de-escalate the conflict between Israel and Hamas.

Technical Overview :

Moving Averages:

Exponential:

  • MA 5: 89.71| Negative Crossover | Bearish
  • MA 20: 89.80| Negative Crossover | Bearish
  • MA 50: 89.40| Negative Crossover | Bearish

Simple:

  • MA 5: 89.70| Negative Crossover | Bearish
  • MA 20: 90.17| Negative Crossover | Bearish
  • MA 50: 88.40| Positive Crossover | Bullish

RSI (Relative Strength Index): 47.91 | Buy Zone | Bullish

Stochastic Oscillator: 25.92| Sell Zone | Negative

Resistance And Support Levels:

  • R1: 91.99 | R2: 94.72
  • S1: 89.02| S2: 85.00

Overall Sentiment: Bearish | Market Direction: Sell

Trade Suggestion: Stop Sell: 88.21 | Take Profit: 85.00 | Stop Loss: 90.38.

Copper:

Copper recovers from a one-year low.

In the realm of industrial metals, copper prices saw a modest uptick on Tuesday, rebounding from a nearly one-year low.

The increase in the value of this red metal was partly attributed to ongoing discussions between U.S. and Chinese officials, fostering hope for improved relations between these economic powerhouses. However, several challenges, particularly lingering concerns about China’s property market, curtailed substantial price gains.

Copper enthusiasts are keenly observing economic data releases in the United States this week. Any indications of strength in manufacturing could suggest a degree of resilience in copper demand. Nevertheless, with global economic conditions deteriorating, the overall outlook for copper remains rather bleak.

Technical Overview :

Moving Averages:

Exponential:

  • MA 5: 3.578 | Positive Crossover | Bullish
  • MA 20: 3.575 | Positive Crossover | Bullish
  • MA 50: 3.599 | Negative Crossover | Bearish

Simple:

  • MA 5: 3.571 | Positive Crossover | Bullish
  • MA 20: 3.571 | Positive Crossover | Bullish
  • MA 50: 3.592 | Negative Crossover | Bearish

RSI (Relative Strength Index): 52.61 | Buy Zone | Bullish

Stochastic Oscillator: 93.6| Buy Zone | Positive

Resistance And Support Levels:

  • R1: 3.612 | R2: 3.737
  • S1: 3.531| S2: 3.445

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Stop Buy : 3.647 | Take Profit: 3.737 | Stop Loss: 3.585.

Elsewhere In the Commodity Market.

Gold price mixed as yield rally cools, US data barrage in focus. XAG/USD drops to near $23 as 10 –year US yields soar to 5%.

Gold down (0.29%) at 1966.51, Silver down (0.17%) at 22.88, Palladium down (0.13%) at 1116.00, Platinum down (1.4%) at 883.50, Brent Crude Oil up (0.58%) at 90.94, WTI Crude Oil up (0.56%) at 85.94 as of writing time.

Key Economic Events & Data Release Today:

(EUR) ECB President Lagarde Speaks at 18:00.