Commodities 2020: weekly charts to watch for the year ahead
Commodities have had a mixed year, but positive outlooks appear in gold, silver and in oil prices.
Gold has been steadily rallying since the beginning of 2016, although the sharp decline in early 2018 and the more modest pullback since September have helped to mask this. Still, the 2018 pullback in 2018 created a higher low, with the uptrend accelerating since August 2018.
A dip to $1265 early in 2019 found support, and provided the foundation for a leap higher to $1550. Interestingly, the price appears to have found support at $1450 over the past few weeks, and if this represents a new higher low then a bullish crossover in weekly stochastics may help reinforce the bullish view. A drop below $1450 brings $1416 and $1375 into play, followed up by trendline support from October 2018.
The price of silver has rallied since late 2018, with higher lows in April and December 2019 confirming the strength of the uptrend.
While the drop back from the August highs at $19.65 has been dramatic, stabilisation at the 200-week simple moving average (SMA) of $16.58 and above trendline support from the May low may combine with a possible bullish crossover in weekly stochastics, generating an interesting potential buying opportunity. Recent gains have failed to hold above $17.10, so a close above here would add to the bullish view. Below $16.50 the price could see further losses in the direction of $14.50.
WTI has recovered from the late 2018 sell-off, but since May it has seen lower highs despite three bounces from the support zone around $52.00.
A breakout above $61.00 would help revive the bullish view, targeting the September high at $63.25 and then the April peak at $66.60. Having held $52.00 so firmly in mid-year, it looks like the price is poised to move higher. A decline below $54.00 dents this impression, and would then bring $52.00 back into play as support.
The picture here is similar, as the price of Brent crude has continued to hold the rising trendline from the June 2017 low.
Dips in the summer around $57.00 found support, and now the price is challenging trendline resistance from the April peak at $74.86. A rally through this targets $68.90 and then $75.00. A pullback towards $58.50 is likely to find support at the post-2017 rising trendline.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Speculate on commodities
Trade commodity futures, as well as 27 commodity markets with no fixed expiries.1
- Wide range of popular and niche metals, energies and softs
- Spreads from 0.3 pts on Spot Gold, 2 pts on Spot Silver and 2.8 pts on Oil
- View continuous charting, backdated for up to five years
1In the case of all DFBs, there is a fixed expiry at some point in the future.
Live prices on most popular markets