Commodity prices are treading water as financial markets look for direction amid a lull in top-tier scheduled event risk. S&P 500 stock index futures are pointing cautiously higher, hinting the growth-linked crude oil and copper price may have scope to advance. A risk-on scenario may likewise offer a boost to gold and silver as ebbing haven demand weighs on the US dollar. July’s Chicago National Activity Index is the only item on the US data docket.
Comex E-Mini Copper (NY Close): $3.420 // +0.038 // +1.12%
Prices are pulling back from resistance at a falling trend line set from the April 3 high, a barrier reinforced by a horizontal level at 3.435. Near-term support lines up at 3.387, with a break lower exposing the 3.300-32 area. Alternatively, a break above 3.435 targets 3.535.
WTI Crude Oil (NY Close): $96.01 // +0.41 // +0.43%
Prices broke resistance at 95.41, the February 2 low, opening the door for a challenge of the 61.8% Fibonacci retracement at 97.82. A break above that exposes the psychologically significant $100/barrel figure. The 95.41 level has been recast as support, with a drop back below that targeting the 50% Fib at 93.90.
Prices continue to drift below resistance in the 1,620.45-35.70 congestion area. Near-term support remains at a rising trend line support set from late June, now at 1,599.67. A break below this boundary exposes a longer-term trend line established from the May 16 bottom, currently at 1,578.22. Alternatively, a push above resistance initially targets the major trend set from the April 23, 2011 peak, now at 1,666.52.
Spot Silver (NY Close): $28.09 // -0.13 // -0.46%
Prices continue to stall above support at 27.68. A break downward initially exposes a rising trend line set from the June 28 low, now at 27.37. Near-term resistance remains at 28.44, with a breach above that opening the door for an advance to challenge 29.42.
Daily Charts - Created Using FXCM Marketscope 2.0