- Oil prices dipped early in Asia on Monday after Israel's strikes in Gaza concluded, reducing some supply concerns from the Middle East.
- Brent crude futures fell 0.4% to $81.88 a barrel, while WTI crude futures also dropped 0.4% to $76.53 a barrel.
- The recent escalation in the Israel-Palestinian conflict had previously driven a 6% price increase last week.
- Israeli military strikes in southern Gaza ended, with Netanyahu having rejected a ceasefire proposal.
- Concerns persist over shipping disruptions in the Red Sea after reports of a missile attack on a ship south of Yemen.
- Houthi attacks on commercial shipping have increased tensions, causing some companies to reroute around Africa.
- In the U.S., an increase in oil and natural gas rigs suggests a potential rise in production, with a return to record output of 13.3 million bpd.
- Despite easing geopolitical tensions, demand concerns linger as a Fed official dismisses the idea of an interest rate cut.
- Trading volumes are expected to be low in Asia due to regional holidays, with markets in China and other countries closed.
- Gold prices remain steady in a tight trading range, waiting for U.S. inflation data for direction.
- Copper prices reach a three-month low as KoBold Metals discovers a significant copper deposit in Zambia.
- Gold retreats to a range between $2,000 to $2,050 in February, with CPI data and Fed commentary anticipated to influence future movements.
- Spot gold slightly down to $2,023.48 an ounce, while April futures drop to $2,037.20 an ounce.
- Copper futures decline 0.4% as the new Zambian copper deposit indicates a possible future increase in global supplies.
Commodities Focus Trading Signals
Asset: XAU/USD (Gold)
Pivot Point: $2,017.383
Trade Direction: Bullish (as the current price is $2,027.067, which is above the pivot point)
Trade Confidence: Moderate (The RSI is slightly above the midpoint, and the MACD is just above the signal line, suggesting a mild bullish momentum)
Friday's Trend: The chart indicates a sideways trend with the price fluctuating around the moving averages.
Market Trend Analysis:
- Volatility: Moderate (ATR at 6.757 indicates some volatility in the price movements)
- Moving Average (MA): Neutral to Bullish (Price hovering around the Ichimoku Cloud)
- Ichimoku Cloud: Neutral (Price is near the Cloud, indicating potential indecision in the market)
- RSI: Slightly Bullish (RSI at 41.05, indicating potential for upside if it trends towards the overbought territory)
- Bollinger Bands: Price is within the bands, suggesting no strong momentum to the upside or downside
- MACD: Slightly Bullish (MACD line is above the signal line but the momentum is weak)
- Volume Oscillator: Negative (-20.00% indicates lower trading volume)
🎯 Profit Targets for Buy:
- 1st Target (1st Resistance): $2,033.773
- 2nd Target (2nd Resistance): $2,043.457
- 3rd Target (Third Resistance): $2,050.163
❌ Stop Loss Guidelines for Buy:
- Set the stop loss at the 1st Support level of: $2,010.677
Suggestion:
Given the current price above the pivot point, a long position may be considered with the first profit target set at the 1st resistance level. However, the moderate trade confidence and negative volume oscillator suggest a cautious approach, with a stop loss set at the first support level to manage risks.
Viewpoint Recap:
XAU/USD shows a moderate bullish signal with current price positioning above the pivot point. Technical indicators suggest a potential for further upside, but the overall market sentiment warrants caution.
Asset: XAG/USD (Silver)
Pivot Point: $22.404
Trade Direction: Bullish (as the current price is $22.560, which is above the pivot point)
Trade Confidence: Moderate (The RSI is above the midpoint and the MACD is above the signal line, indicating some bullish momentum)
Friday's Trend: The chart indicates a sideways trend with the price oscillating around the moving averages.
Market Trend Analysis:
- Volatility: Moderate (ATR at 0.15781 suggests some volatility in price movements)
- Moving Average (MA): Bullish (Price above the Ichimoku Cloud would suggest a bullish trend)
- Ichimoku Cloud: Bullish (Price is above the Cloud, indicating a potential upward trend)
- RSI: Slightly Bullish (RSI at 61.62 indicates potential for further upside)
- Bollinger Bands: Price is within the bands, indicating no strong momentum to the upside or downside
- MACD: Slightly Bullish (MACD line is above the signal line)
- Volume Oscillator: Negative (-22.32% indicating lower trading volume)
🎯 Profit Targets for Buy:
- 1st Target (1st Resistance): $22.759
- 2nd Target (2nd Resistance): $22.915
- 3rd Target (Third Resistance): $23.114
❌ Stop Loss Guidelines for Buy:
- Set the stop loss at the 1st Support level of: $22.205
Suggestion:
A long position could be considered given the current price is above the pivot point, with the first profit target set at the 1st resistance level. The trade should be managed with a stop loss at the first support level to mitigate risk due to the moderate volatility and negative volume oscillator.
Viewpoint Recap:
XAG/USD presents a bullish signal with the price above the pivot point and technical indicators suggesting a mild bullish momentum. However, traders should maintain caution due to the moderate volatility and lower trading volume.
Asset: WTI Crude Oil
Pivot Point: $76.083
Trade Direction: Bullish (as the current price is $76.687, which is above the pivot point)
Trade Confidence: Moderate (The RSI is close to the overbought territory and the MACD is above the signal line, suggesting bullish momentum)
Friday's Trend: The chart indicates a stable upward trend with the price above the moving averages.
Market Trend Analysis:
- Volatility: Moderate (ATR at 0.672 indicates some volatility in the price movements)
- Moving Average (MA): Bullish (Price above the Ichimoku Cloud suggests a bullish trend)
- Ichimoku Cloud: Bullish (Price is above the Cloud, indicating a potential upward trend)
- RSI: Bullish (RSI at 66.83 indicates a strong upward momentum, though close to overbought conditions)
- Bollinger Bands: Price is near the upper band, suggesting some bullish momentum
- MACD: Bullish (MACD line is above the signal line)
- Volume Oscillator: Negative (-25.91% indicating lower trading volume)
🎯 Profit Targets for Buy:
- 1st Target (1st Resistance): $77.443
- 2nd Target (2nd Resistance): $78.047
- 3rd Target (Third Resistance): $78.803
❌ Stop Loss Guidelines for Buy:
- Set the stop loss at the 1st Support level of: $75.327
Suggestion:
Considering the current price is above the pivot point, a long position could be considered with the first profit target set at the 1st resistance level. The trade should be managed with a stop loss at the first support level due to the moderate volatility and the RSI approaching overbought territory.
Viewpoint Recap:
WTI Crude Oil shows a bullish signal with the price above the pivot point and technical indicators suggesting continued upward momentum. However, traders should be cautious of potential reversals as the RSI is nearing overbought levels.
Asset: Brent Crude Oil
Pivot Point: $81.450
Trade Direction: Bullish (as the current price is $81.950, which is above the pivot point)
Trade Confidence: Moderate (The RSI is above the midpoint, and the MACD is above the signal line, suggesting some bullish momentum)
Friday's Trend: The chart indicates a stable upward trend with the price consistently above the moving averages.
Market Trend Analysis:
- Volatility: Moderate (ATR at 0.584 indicates some level of volatility, yet not extreme)
- Moving Average (MA): Bullish (Price above the Ichimoku Cloud would suggest a bullish trend)
- Ichimoku Cloud: Bullish (Price above the Cloud, supporting an upward trend)
- RSI: Bullish (RSI at 65.03 indicates a strong upward momentum, not yet overbought)
- Bollinger Bands: Price is near the upper band, which can indicate bullish momentum
- MACD: Bullish (MACD line is above the signal line, supporting the upward trend)
- Volume Oscillator: No data available
🎯 Profit Targets for Buy:
- 1st Target (1st Resistance): $82.690
- 2nd Target (2nd Resistance): $83.190
- 3rd Target (Third Resistance): $83.930
❌ Stop Loss Guidelines for Buy:
- Set the stop loss at the 1st Support level of: $80.710
Suggestion:
Considering the current price is above the pivot point, a long position may be considered with the first profit target set at the 1st resistance level. The trade should be managed with a stop loss at the first support level to mitigate risk.
Viewpoint Recap:
Brent Crude Oil presents a bullish signal with the price above the pivot point and technical indicators suggesting an upward momentum. The moderate volatility and bullish technical indicators suggest a continuation of the current upward trend.
Asset: Copper
Pivot Point: 3.699
Trade Direction: BEARISH
Trade Confidence: Moderate - Copper’s current price action below the pivot point suggests a bearish outlook, reinforced by the MACD trending below the signal line.
Yesterday's Trend
Copper prices showed a downward trend, closing below the previous day's opening price.
Market Trend Analysis
- Volatility: The ATR indicates moderate volatility, with potential for continued price fluctuations within a defined range.
- Technical Indicators: The RSI is neither oversold nor overbought, but the downward slope suggests growing bearish momentum. The MACD below its signal line further supports the bearish trend.
🎯 Profit Targets
- Sell:
- 1st Target (1st Support): 3.666
- 2nd Target (2nd Support): 3.631
- 3rd Target (3rd Support): 3.582
❌ Stop Loss Guidelines
- Sell: Set the stop loss at the 1st Resistance level of 3.750.
Suggestion
Given the current bearish indicators, it may be advisable to enter a short position with the profit targets outlined above. A stop loss slightly above the first resistance level can help manage risk.
Disclaimer: These Trading Signals are based on the current charts and market conditions. Always conduct your own analysis and consider risk management strategies before entering any trade. Markets are dynamic, and conditions can change rapidly.
As with all investments, your capital is at risk. Investments can fall and rise and you may get back less than you invested.