Below we highlight our trading range charts of ten major commodities. The green shading represents between 2 standard deviations above and below the commodity's 50-day moving average, and moves above or below this area are considered overbought or oversold.
From a technical perspective, oil has been trying to form a bottom over the past couple of months. It has tested its lows twice now and held support each time. The next point of interest for oil will be its resistance at its January highs. If it can break above these highs, a new short-term uptrend will have formed. Natural gas, on the other hand, continues to hit new lows within its long-term downtrend, and no bottom is in sight.
Precious metals have been the one area of strength in commodities recently. But after moving into extreme overbought territory, gold, silver, and platinum have pulled back slightly. Gold has some major resistance at the $1,000 level, and it looks like it's going to take a lot to push it through. Other commodities like corn, wheat, and orange juice have moved back to the bottom of their trading ranges in recent days.
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