. Daily Commodity Analysis - Oil rises, gas soars, gold falters.

Daily Commodity Analysis – Oil rises, gas soars, gold falters.

Daily Commodity Analysis – Oil rises, gas soars, gold falters.

26 Jan 2024

Introduction

WTI crude oil is poised to end the week positively, hovering around $77.00 per barrel during the Asian session, driven by robust US GDP data and China’s liquidity injection strategy. Meanwhile, US natural gas futures rise ahead of the EIA report, propelled by cooler forecasts and reduced production. Gold prices struggle within a tight range as traders await cues on US interest rates, with key inflation data and a Federal Reserve meeting in focus. Copper prices are on track for a strong weekly performance due to China’s additional stimulus. Silver faces resistance near $23, with market sentiment cautious ahead of US core PCE data, crucial for the Fed’s interest rate decisions.

Markets In Focus Today – CRUDE OIL

WTI hovers around $77.00 with a positive momentum, focus shifts to US PCE, Oil Rig Count.

WTI price is expected to close the week in a positive territory due to multiple factors GDP data contributed support to reinforcing the Crude oil prices.PBoC’s strategy to inject liquidity into the economy contributes to the strength in oil prices. Chinese officials asked their Iranian counterparts to help restrain attacks on ships in the Red Sea. West Texas Intermediate (WTI) oil price pauses its two-day winning streak but is anticipated to conclude the week on a positive note, trading near $77.00 per barrel during the Asian session on Friday. However, the Crude oil prices received a positive momentum, which is attributed, in part, to the better-than-expected GDP Annualized (Q4) released from the United States on Thursday.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 74.82 | Positive Crossover | Bullish
  • MA 20 : 73.99 | Positive Crossover | Bullish
  • MA 50 : 74.72 | Positive Crossover | Bullish

Simple :

  • MA 10 : 74.32 | Positive Crossover | Bullish
  • MA 20 : 73.21 | Positive Crossover | Bullish
  • MA 50 : 73.47 | Positive Crossover | Bullish

RSI (Relative Strength Index): 61.42 | Buy Zone | Bullish

Stochastic   Oscillator : 92.20 | Buy Zone | Negative

Resistance   And Support Levels :

  • R1 : 75.38 R2 : 77.52
  • S1 : 68.47 S2 : 66.33

Overall Sentiment: Neutral Market Direction: Buy

Trade Suggestion: Limit Buy: 76.27 | Take Profit: 79.57 | Stop Loss: 74.39

NATURAL GAS

Natural Gas Lower Production Helps Futures Soar Ahead of EIA Data.

U.S. natural gas futures rise ahead of the EIA report, driven by cooler forecasts and reduced output despite ample storage. Natural gas futures rise, EIA report highly anticipated. Cooler weather and output cuts boost gas prices. Ample storage suggests limited gains in natural gas. U.S. natural gas futures are experiencing a sharp increase as traders anticipate the weekly Energy Information Administration (EIA) storage report. The rise is attributed to cooler weather forecasts and ongoing output reductions. However, the ample supply in storage suggests that gains might be capped.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 2.56 | Negative Crossover | Bearish
  • MA 20 : 2.61 | Negative Crossover | Bearish
  • MA 50 : 2.65 | Negative Crossover | Bearish

Simple :

  • MA 10 : 2.59 | Negative Crossover | Bearish
  • MA 20 : 2.71 | Negative Crossover | Bearish
  • MA 50 : 2.59 | Negative Crossover | Bearish

RSI (Relative Strength Index): 42.39 | Neutral Zone | Neutral

Stochastic   Oscillator : 14.65 | Sell Zone | Negative

Resistance   And Support Levels :

  • R1 : 2.60 R2 : 2.71
  • S1 : 2.22 S2 : 2.11

Overall Sentiment: Bearish Market Direction: Sell

Trade Suggestion: Limit Sell: 2.498 | Take Profit: 2.285 | Stop Loss: 2.656

GOLD

Gold prices struggle before inflation, Fed cues.

Gold prices kept to a tight range on Friday and were headed for a second straight week in the red as anticipation of more cues on U.S. interest rates kept traders skittish, with key inflation data and a Federal Reserve meeting now in focus. On the other hand, copper prices were headed for a strong weekly performance after top importer China rolled out more stimulus measures, driving up hopes that demand for the red metal will remain strong. China’s stimulus measures saw some improvement in risk appetite which, coupled with a series of record highs on Wall Street, further dented demand for gold.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 2024.75 | Negative Crossover | Bearish
  • MA 20 : 2029.14 | Negative Crossover | Bearish
  • MA 50 : 2019.88 | Positive Crossover | Bullish

Simple :

  • MA 10 : 2024.69 | Negative Crossover | Bearish
  • MA 20 : 2032.89 | Negative Crossover | Bearish
  • MA 50 : 2029.95 | Negative Crossover | Bearish

RSI (Relative Strength Index): 47.16 | Buy Zone | Bullish

Stochastic   Oscillator : 27.42 | Sell Zone | Neutral

Resistance   And Support Levels :

  • R1 : 2127.21 R2 : 2168.19
  • S1 : 1994.53 S2 : 1953.54

Overall Sentiment: Bearish Market Direction: Sell

Trade Suggestion: Limit Sell: 2024.18 | Take Profit: 1998.37 | Stop Loss: 2040.00

SILVER

XAG/USD rally stalls near $23 as focus shifts to US core PCE data.

Silver price faces some pressure while attempting to extend its rally above $23.The market mood is downbeat as investors await the core PCE price index data for December. Strong GDP numbers and stubborn inflation data could allow the Fed to maintain a hawkish interest rate stance. Silver price (XAG/USD) struggles to extend upside above the crucial resistance of $23.00. The white metal turns sideways as investors shift focus towards the United States core Personal Consumption Expenditure (PCE) price index data for December, which will be published at 13:30 GMT.

Technical   Overview With Chart :

Moving Averages :

Exponential :

  • MA 10 : 22.83 | Positive Crossover | Bullish
  • MA 20 : 22.57 | Positive Crossover | Bullish
  • MA 50 : 22.82 | Negative Crossover | Bearish

Simple :

  • MA 10 : 22.86 | Positive Crossover | Bullish
  • MA 20 : 22.57 | Positive Crossover | Bullish
  • MA 50 : 22.82 | Negative Crossover | Bearish

RSI (Relative Strength Index): 53.54 | Buy Zone | Bullish

Stochastic   Oscillator : 95.06 | Buy Zone | Neutral

Resistance   And Support Levels :

  • R1 : 23.21 R2 : 24.02
  • S1 : 22.68 S2 : 21.85

Overall Sentiment: Neutral Market Direction: Buy

Trade Suggestion: Limit Buy: 22.70 | Take Profit: 23.52 | Stop Loss: 22.23

Elsewhere In The Commodity Market

Gold is up (0.01%) at 2020.71, Silver is down (0.12%) at 22.85, Palladium is down (0.79%) at 930.11, Platinum is up (0.7%) at 894.38, Brent Crude is down (0.64%) at 80.77, WTI Crude Oil down (0.79%) at 76.73 as of writing time. .

Key Economic Events & Data Release Today:

(USD) Core PCE Price Index (MoM) (Dec) Forecast 0.2%, Previous 0.1% at 08:30. (CAD) Wholesale Sales (MoM) Previous 0.9% at 8:30. (USD) Pending Home Sales (MoM) (Dec) Forecast 1.5%, Previous 0.0% at 10:00.