#forexbreakfast focus commodity (eng)
A week down for the Bloomberg commodity index that has closed with a -0.5%.
The context is that of a general weakness in commodities, together with the strength of the dollar and fears of the new wave of contagions in Europe.
The only positive sector was agriculture + 0.9%. Well, wheat and soy. Arabica coffee + 5.2% at the highest in 10 years; thanks to production problems in Brazil and problems with logistics.
The precious metals sector closed down -1.2%, following the strength of the dollar and the rise in real rates. Gold closed with a moderate -1%, fared worse than the other metals; platinum has lost about 5%. The worst sector of the week was energy -1.4%.
Strong sales on oil and derivatives. The fears regarding the sales of strategic reserves by China, the US, and Japan, and the increase in infections weighed heavily. Gas TTF + 15.1% following the German blockade of the NS2 gas pipeline. The prices are downsizing following a greater Russian offer, but the expected temperatures limit the decline. Non-ferrous metals are also bad -0.6%. Lead -6.6% after indications of a strong global surplus. Iron + 3%.
The weakness of Brent continued, coming to test the support at 78.75. Brent must close above this level, otherwise, there could be further sales with a target of 74.55.
The support at 76.48 is to monitor. On the upside, the first resistance to monitor is 83.95. The daily stochastic is going oversold, while the weekly is coming out of overbought.
After an upward phase, gold temporarily stopped on the bearish trendline that connects the highs of January and June 2021. The prices remain above the bearish trendline that started from the all-time highs of 2020, so the strength signal is still valid.
Both oscillators are overbought. The resistances to monitor are 1872 and 1919.
Last week, copper closed below the resistance at 9736, but above the bearish trendline broken in October.
Therefore, the context remains positive.
On the upside, the resistance at 10242 is to monitor.
The support at 8992 is to monitor. A breakout of it could trigger another wave of comings.