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Current Outlook for Commodities

Published 02/22/2023, 12:18 AM
Updated 07/09/2023, 06:31 AM
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Gold traded mostly sideways for a week but I think this is a consolidation in a short-term bear trend & so the outlook remains negative. I think eventually we will head lower again.

Silver made a high for the day exactly at resistance at 2195/2205.

WTI crude MAY hold a range from 7300/7270 up to 8320/50. Resistance at 7760/7800, with a high for the day exactly here yesterday. If you did short, there was a potential profit of 150 ticks.

An inside day yesterday does not help me judge the direction for today in this volatile sideways consolidation.

Today's Analysis

Gold meets strong resistance at 1850/53 on any bounce today. Shorts need stops above 1858. A break higher sees 1853/50 act as support targeting  1859/60, 1864/85 & perhaps as far as resistance at 1870/75.  Shorts need stops above 1880.

Targets for shorts are 1840, 1835, and 1825. Eventually, we should retest last week's low at 1820/17. I do not expect this to hold for long & a break lower can target 1809/06.

Silver was a high for the day exactly at resistance at 2195/2205. Shorts need stops above 2215. A break higher can target 2235/40 & strong resistance at 2250/60. Shorts need stops above 2280.

Shorts at 2195/2205 can target 2170/65 & 2150/40. Eventually, we should retest 2125/15, although I have no idea of the timing.

A break below last week's low at 211 can target the 200-day moving average at 2100/2095

WTI Crude May still be difficult to read in the wide sideways trend. A break below 7550 today targets 7680/50. Below 7400 meets strong support at 7330/7280. Longs need stops below 7220.

We should have strong resistance again at 7760/7800. Shorts need stops above 7850.

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