Everything seems to be back to normal; stocks are moving higher again and the ‘risk on’ mode is back on the table. In today’s analysis, we will focus on commodities, as we can spot very interesting setups there, which should brighten your Wednesday trading.
We start with Gold, which had a great session yesterday, that allowed it to create a proper mid-term buy signal. The positive sentiment is coming from the fact that the price bounced from the combination of a horizontal and dynamic supports around the 1790 USD/oz. After the bounce, the AU moved higher and today, challenged the upper line of the flag formation. The first attempt looks successful for buyers but to make it legitimate, they need to hold the price above the upper line of the flag for the rest of the day.
Brent also started Wednesday with a bullish breakout. In the case of oil, we are talking about a symmetric triangle. The price closing the day above that resistance will be a proper mid-term buy signal for Black Gold.
I will finish this analysis with Natural Gas, where the price is fighting for the continuation of a new bullish trend. Recent optimism was coming from the inverse head and shoulders formation and the breakout of two down trendlines. Most recently, the price formed a flag, which is promoting a breakout to the upside and this is the breakout we are currently waiting for. The price closing the day above the upper line of the flag, will be an invitation to go long.
Buy Signal For These 3 Commodities?
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