. Daily Commodity Analysis - Oil Soars, Copper Thrives Amid Global Concerns

Daily Commodity Analysis – Oil Soars, Copper Thrives Amid Global Concerns

Daily Commodity Analysis – Oil Soars, Copper Thrives Amid Global Concerns

27 Oct 2023

Introduction:

In the commodities market, there are notable developments. Crude oil prices have surged over $1 due to concerns about escalating conflict in the Middle East, particularly following reports of a U.S. military strike on Iranian targets in Syria. This has raised worries about a potential impact on oil supply from the region. On the other hand, copper prices have risen, driven by signs of improvement in the Chinese economy. Copper futures posted a 0.3% gain on Friday, and for the week, they were up by 1.1%. Additionally, gold prices are holding near the $2,000 mark amidst increasing tensions between the U.S. and Iran.

Brent Crude Oil:

Crude oil surges by over $1 due to concerns about the expansion of the conflict in the Middle East.

On Friday, oil prices increased by more than $1 following reports of a U.S. military strike on Iranian targets in Syria. These reports raised concerns about a potential escalation of the Israel-Hamas conflict, which could have an impact on the oil supply from the critical Middle East producing region.

Brent and WTI are set to record their initial weekly decline in three weeks, as the geopolitical risk premium associated with these concerns has diminished, given the absence of oil supply disruptions beyond the immediate conflict area.

Technical Overview :

Moving Averages:

Exponential:

  • MA 5: 88.28| Positive Crossover | Bullish
  • MA 20: 88.71| Positive Crossover | Bullish
  • MA 50: 88.95| Positive Crossover | Bullish

Simple:

  • MA 5: 88.08| Positive Crossover | Bullish
  • MA 20: 89.33| Negative Crossover | Bearish
  • MA 50: 88.03| Positive Crossover | Bullish

RSI (Relative Strength Index): 51.11 | Buy Zone | Bullish

Stochastic Oscillator: 43.72| Neutral Zone | Positive

Resistance And Support Levels:

  • R1: 89.26 | R2: 92.52
  • S1: 87.13| S2: 84.64

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Stop Buy: 90.27 | Take Profit: 92.52 | Stop Loss: 88.96.

Copper:

Copper prices rise as China trends improve.

Within the realm of industrial metals, copper prices experienced a modest increase on Friday, continuing their rebound from levels not seen in over five months. This improvement was attributed to data indicating a slight uptick in the Chinese economy.

Copper futures climbed by 0.3% to reach $3.6022 per pound, and they registered a weekly gain of 1.1%.

Data released on Friday revealed that China’s industrial profits exhibited marginal improvement year-on-year in September, with a 9% decrease compared to a more substantial 11% decline in the preceding August.

Additionally, the positive third-quarter U.S. GDP data provided further support for copper prices.

Technical Overview :

Moving Averages:

Exponential:

  • MA 5: 3.604 | Positive Crossover | Bullish
  • MA 20: 3.593 | Positive Crossover | Bullish
  • MA 50: 3.601 | Positive Crossover | Bullish

Simple:

  • MA 5: 3.600 | Positive Crossover | Bullish
  • MA 20: 3.584 | Positive Crossover | Bullish
  • MA 50: 3.595 | Positive Crossover | Bullish

RSI (Relative Strength Index): 56.15 | Buy Zone | Bullish

Stochastic Oscillator: 64.73| Buy Zone | Positive

Resistance And Support Levels:

  • R1: 3.624 | R2: 3.705
  • S1: 3.560| S2: 3.504

Overall Sentiment: Bullish | Market Direction: Buy

Trade Suggestion: Stop Buy : 3.645 | Take Profit: 3.705 | Stop Loss: 3.601.

Elsewhere In the Commodity Market.

Gold prices are on the rise, maintaining their proximity to the $2,000 mark amid escalating tensions between the U.S. and Iran. XAG/USD tumbles below $23.00 on upbeat US Q3 GDP data.

Gold up (0.13%) at 1987.08, Silver up (0.35%) at 22.84, Palladium up (0.36%) at 1137.09, Platinum up (0.56%) at 905.00, Brent Crude Oil up (2.51%) at 90.14, WTI Crude Oil up (2.49%) at 85.28 as of writing time.

Key Economic Events & Data Release Today:

(USD) Core PCE Price Index (MoM) (Sep) Forecast 0.3%, Previous 0.1% at 08:30.