#forexbreakfast focus commodity (eng)
Last week, the third in a row, the Bloomberg commodity index closed lower -0.6%. The index is affected by the many uncertainties in place. From supply to demand, the energy crisis, new outbreaks in China, and the prospects for a global economic slowdown due to inflation. The worst sector of the week once again has been non-ferrous metals -2.9%. The lower demand, combined with higher production in China, has weighed on this sector. Aluminum -6.1%, penalized by the price of energy in China. Zinc -4.5% on lower demand from the steel sector. Iron -12.2%.
Slight weakness in the energy sector, -0.3%. Bad week for oil; given the likely sale of strategic reserves by Western countries, after the increase of 400,000 B/d not considered sufficient to calm prices. TTF gas rose + 14.1% despite promises from Russia.
The agricultural sector also fell -1.2%. Soybeans have been down -3.5%. Cotton + 1.5%, sugar + 3.5%.
Good week for the precious metals sector + 1.6%. Gold, silver, palladium, and platinum closed positively.
The week has been down for Brent, which has ended with a price rebound on Friday. On the downside, the support at 80.20 remains to monitor, followed by 78.85.
The daily stochastic remains overbought. The negative divergence with prices remains, which could lead to a further decline.
As long as prices remain above the support at 73.10, the trend will remain solidly bullish. On the upside, resistance at 86.70 followed by 88.84 remains to monitor.
Adjustment week for copper, the bearish trendline broken up in October is serving as a dynamic support. The daily stochastic is oversold, while the weekly stochastic remains neutral. Support at 9400 remains to monitor, followed by area 9000. On the upside remains to monitor area 9852.
The upward movement of 2021 seems to have ended. The prices have fallen in the area of the 2020 uptrend line.
The support at 2546 remains to monitor. Below it there is the support at 2480, where the long-term trendline passes. If this support will be broken, the prices could reach area 2410/2352. The weekly stochastic is neutral, while the daily is oversold, diverging with prices. A rebound is probable with target the 2021 trendline.