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The Commodity Report – 24 January 2019

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

The World Economic Forum (WEF) is well underway and the markets have been reacting to news released from Davos. Commodities have been ticking lower over the last week as concerns of a global economic slowdown starts creeping in.

see our full report and charts in this note.

Brent Crude Oil

The outlook on Brent is pretty much the same as our last Commodity Report with a possibility that Oil might push higher to $64.67 per barrel. The Saudi Finance Minister, Mohammed Al-Jadaan live from Davos stated that they are committed and working towards a stable Oil market.

The slowing global economic growth concerns filtering through should be taken note of as it will have an impact on the demand for oil.

  • Some technical aspects to take note of are that the price is trading above the 50-day Simple Moving Average (SMA) (blue line) once again. There is a possibility of an inverse head and shoulder pattern forming which would support the move higher.

Screenshot 2019-01-24 at 12.26.19

Source – MetaTrader5

Gold

The precious metal is back at the $1276/oz support level and is showing signs of weakening in the short-term. If the support level does not hold, we might see the price action move lower to the $1266/ oz level. Price is well above the 50-day Simple Moving Average (SMA) (blue line) and the Relative Strength Index (RSI) neutral.

  • There are a couple of technical levels coming into play on Gold, take note of the uptrend support line (solid red) which meets the 1276 support line. The price action might as well just rebound from these levels and move higher to $1297/ oz.

Screenshot 2019-01-24 at 12.27.24

Source – MetaTrader5

 

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