Trading commodities, metals, energy Archive
An illustration why knee jerk trading response to headlines is wrong with two pieces of reporting on crude oil production.
Although XAUUSD will probably do another leg down, signs are in place for a big up wave. Last year's new 52-wk high has terminated 2013 - 2015 down trend.
Last week's shocking spike in crude oil prices is +12% and counting, the biggest one-week gain in five years. Media stories blame one culprit: the November 30 OPEC agreement to cut production. The weeks leading up to the meeting were filled with anticipation and emotion. Oil prices went all over the place -- down 4%
Price of Crude Oil (WTI) diverges from XLE since 2013, divergence widens further. These are some questions I have, most importantly how to trade this setup.
I share this free tool from Tradingeconomics.com which is very handy for picking winners and losers among trading commodities. In addition, I present charts of soya bean and copper which investors might want to add to their watchlist.
Rising DXY could be signalling crude oil weakening especially since WTI and Brent are both at resistance. I discuss the signal in WTI to look out for.