Oil – Bullish symmetrical triangle breakout

Daily chart



Gold looks due for correction

The weekly chart below shows a nice symmetrical triangle pattern…Prices breached support of weekly 100-MA (still sloping upwards) and $1214.40 (May low). The metal extended losses to $1204.70 earlier today before recovering to $1212.60.

I feel the metal has found a temp low at $1204.70 and is likely to extend the recovery to $1219 and $1230 levels…. mainly because the 10-year treasury yield is yet again struggling to break above 2.4%.

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Copper – Head & Shoulders inside a bigger Inverse Head & Shoulders

Daily chart

Going by the technical rules, the bulls – inverse head and shoulders – should win the battle because — Head and Shoulders (bearish reversal) works best when it appears at the top of a bull market. while the inverse head and shoulders (bullish reversal) works best when it appears at the bottom of the bear markets.

Over here, the inverse head and shoulders pattern is being formed at the bottom of a 7-1/2 year sell-off…

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Brent oil at 4-week high, rally runs into 50-DMA, bearish 100-DMA & 200-DMA crossover

The sharp rally in Brent oil has run into the 50-DMA hurdle. The moving average is sloping lower, so I wouldn’t want to bet on further gains. Expect sideways to negative action. Also note the bearish 100-DMA & 200-DMA crossover. What’s more important is the fact that the crossover has happened during the sharp rally… so it is more likely to work.

One can initiate short trades with very tight stops. On the downside, $48-$48.27 is a strong support. Fresh longs could be initiated below $48.00 levels.

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