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The Commodity Report – 21 February 2019

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Barry Dumas
Saudi-oil-deal-technical-trade-note-OPEC

Commodities, especially Gold, Oil and palladium have been in the commodities of choice for investor over 2019 as global growth concerns, supply cuts, shortages and demand for safe havens become a focal point.

Let’s take a closer look at some of the commodities:

Gold

Seasonality and global concerns are playing out nicely in Gold as described in my previous Commodity Report. The precious metal has been gaining momentum in 2019 and has reached highs last seen in March 2018. We might see a short-term pullback down to a support level at $1326/ oz before the price action moves higher once more.

  • The price action is still trading well above its 50-day Simple Moving Average (SMA) (blue line) and gaining momentum.
  • If we see the upward momentum continue from current levels, then I would expect to see the price reach the $1350/ oz very soon.

Screenshot 2019-02-21 at 13.16.28

Source – MetaTrader5

Brent Crude Oil

The Inverse Head & Shoulders reversal pattern is playing out nicely in our Brent Crude Oil trade with our first target price of $68.31/ barrel insight.

  • If the supply cuts continue as accepted, then the price of Oil might move well over $70/ barrel in the near future.
  • Take note that due to the public holiday in the U.S the Crude Oil inventories will be released today at 18:00 SAST.
  • We might see a short-term pullback and volatility in the oil price due to the inventories release.

Screenshot 2019-02-21 at 13.17.11

Source – MetaTrader5

Palladium

The stellar run we have seen in Palladium over the last couple of months is still going strong and set to move even higher. Palladium reached $1500/ oz for the first time and is set to reach even new highs closer to $1600/ oz if the demand persists.

  • The momentum in palladium is mainly due to the fact that there is a shortage of supply to car manufacturers. They need the metal to meet new stringent emission controls moving forward.
  • We might see a short term pull back as the price did go parabolic from the upward trend as traders take profits before the price pushes higher.

 Screenshot 2019-02-21 at 13.18.11

Source – MetaTrader5

 

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