WTI, gold and NY cotton stall ahead of final US Q4 GDP
Outlook on WTI, gold and cotton as sentiment continues to improve as banking woes fade.
WTI is losing upside momentum at technical resistance
The over 15% rally in the price of WTI from its $64.37 per barrel March low on the back of increased demand expectations from top importer China and a legal dispute which blocked around 4000,000 barrels a day of oil exports from Turkey, is stalling, having been rejected by the continuation triangle support, now resistance, line at $74.42 on Wednesday.
A slip back to the January and February lows at $72.64 to $72.50 thus looks imminent with a slide to the 23 March high at $71.69 looking possible. Further minor support sits at the December trough at $70.25.
Were Wednesday’s high at $74.40 to be exceeded, however, the mid-February low at $75.33 would be eyed, followed by the 3 March low at $75.92 and the 55-day simple moving average (SMA) at $76.24.
Gold finds its equilibrium around the $1,970 per troy ounce mark
Gold’s retracement from late last week’s $2,003 per troy ounce high, made slightly below its one-year high at $2,009, has led to it slipping to this week’s low at $1,945 as bank fears fade.
Were Monday’s low at $1,945 to give way, last week’s low at $1,935 would be in focus, a drop through which would target the 3 March high at $1,914.
Immediate downside pressure should be maintained while the gold price stays below Monday’s high at $1,978. Above this level sits the key $2,003 to $2,009 resistance zone and much further up the all-time March 2022 high at $2,070.
NY cotton price surge losing upside momentum
The price of NY front month cotton futures, which has risen by over 9% from last week’s $76.04 per 50,000 pound low amid weather related tightening supply, is losing upside momentum.
Even though it has broken through its May 2022 to March 2023 downtrend line, it is losing upside momentum around the 55-day SMA at $83,24 which acts as resistance.
The advance has stalled as the cotton market this week is waiting for export sales reports on what planting acres might be, which are to be published on Thursday and Friday. A rise and daily chart close above Wednesday’s $83.67 high would engage the $86.26 early March high.
Support can be spotted between the January and mid-February lows at $80.83 to $80.42 as well as along the breached downtrend line, which because of inverse polarity has become a support line, at $80.18.
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