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Commodities trading was mixed during the final week of May. A month that turned out to be the come-back month for many markets following the Covid-19 related collapse seen during Q1.
Watch trader reaction to $1744.10 to $1754.30 early next week. This should tell us if buyers have returned or if sellers are taking control.
The direction of the next major move in crude oil will be determined by trader reaction to the retracement zone at $36.07 to $40.50.
Stocks fell on Friday, extending losses from Thursday’s session as investors eyed renewed tensions between the U.S. and China.
The direction of the June E-mini Dow futures contract into the close on Friday is likely to be determined by trader reaction to 25144 and 24935.
The new minor range is 2903.75 to 3065.50. Its 50% level at 2984.50 is controlling the direction of the index on Friday.
The recent oil price rally appears to have stalled as tensions between the U.S. and China weigh on energy markets and the rebound in global demand appears to slow
The direction of the EUR/USD the rest of the session on Friday is likely to be determined by trader reaction to the main 50% level at 1.1066.
The S&P; 500 rallied towards the 3000 level during the week, but as you can see have given up quite a bit of the gains.
Crude oil markets have gone back and forth during the week, showing signs of noisy trading. The gap above is certainly in focus in both grades that I follow.
Natural gas initially tried to reach above the $2.00 level but then rolled over about $0.25 by the time we got done.
Longer-term, we believe metals could continue to rally for quite a while, yet we understand skilled technical traders want to time entries to limit risks.
Silver markets rallied significantly during the trading session on Friday, as we continue to see a lot of noise in general.
Crude oil markets initially dipped on Friday but then turned around to show signs of strength again.
Gold markets have shot higher during the trading session on Friday, breaking above the top of the shooting star from the previous session.
The US dollar continues to go back and forth overall, as the ¥107 level looks to be a bit of a magnet for price.
The Euro exploded to the upside during the week, breaking above the 1.11 level. However, we are reaching some significant resistance just above.
The Australian dollar has rallied a bit during the week, reaching towards the 50 week EMA, which of course is one indicator reliable over the last years.
Despite production cuts from OPEC+ and North America and slowly improving demand, oil prices are not expected to average much higher than current prices in 2020
It’s a busy week ahead. Central banks are in action and China will be in a retaliatory mood. Then there are the stats to begin tracking once more…
U.S. crude marketing company Eighty-Eight Oil LLC has declared force majeure after oil producers across the Rockies and North Dakota shut production as the coronavirus eroded demand and sent prices plunging, four sources familiar with the matter said. The company declared force majeure after producers selling oil to them shut production, causing Eighty-Eight to be short on barrels that they had committed to sell, two sources said. In North Dakota, the second-largest producer after Texas, output is down by more than 500,000 barrels per day, state officials said.
At this point, the market looks as if it is ready to go back into the previous gap, where there should be plenty of buyers.
The pressure from the increase in oil inventories is offset by reports that Saudi Arabia wants to extend current production cuts until the end of the year.