📈 Technical Commodity Market Analysis

Moving Averages

  • If the price has dropped below the MA line when the market closes, a sell signal is generated.
  • If the price rises above the MA line when the market closes, a buy signal is generated.
Chart 1: Brent crude futures against 50-day MA (red) and 200-day MA (grey)

Trendlines & Channels

Chart 2: Channel in soybean market

Support & Resistance

Consolidation & Breakouts

Chart 3: Congestion zone in silver showing false breakout, support becoming resistance after downward breakout followed by final upward breakout

Classic Chart Pattern 1: Heads & Shoulders (H&S)

Chart 4: Downward sloping head and shoulders pattern on sugar

Classic Chart Pattern 2: Triangles

Chart 5: Descending triangle with breakout below support level in silver

Relative Strength Index (RSI)

Chart 6: Gold price with RSI

Open Interest

  1. If prices are trending up or down and open interest is also rising, then this indicates the price trend is more likely to continue.
  2. If prices are trending up or down but open interest is declining, then the price trend is less likely to continue.
  3. If prices are in a congestion range and open interest is rising this tends to be bearish for prices.
  4. If prices are in a congestion range but open interest is falling this tends to be bullish for prices.

TL;DR — How To Think About Using Technical Commodity Analysis

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We write about commodities and make it easy to understand.