Oil capitulated in 2022, but recent price action shows accumulation. This, on the back of potential positives, should support energy prices.

The commodity is upbeat, as the European session gets underway, despite lackluster data from China, following a poor weekly start

Between June 2022 and November 2022, copper traded sideways in an accumulation pattern (green rectangle). Then, as the CHN 50 started appreciating, copper moved into a mark-up phase - trading above its 30-week EMA, with the EMA turned up. The RSI has pushed to the bullish side of 50 (blue rectangle). As long as it maintains this position, copper's underlying momentum will be biased to the upside.

The commodity made a strong start to the week on China and Fed optimism, but now faces difficulties, as the World Bank expects global growth to decelerate sharply this year

The precious metal rose to the highest levels since May on Monday, driven by hopes of a Fed pivot, but consolidates its gains today

FXCM’s Brent and WTI CFDs, UKOil and USOil, have moved into their neutral zone between the blue bands. This is a movement of strength. China is opening its borders for the first time in 3 years. This is part of its new Covid-19 policy.

Oil has been clobbered over the last two trading days. UKOil, FXCM’s Brent CFD, and USOil, its WTI CFD, have both fallen into their bearish channels between the lower blue and red bands. If the red Bollinger bands expand, volatility will be increasing

Gold continues to climb, notching up prices last seen in June of last year. The precious metal is positioned between its upper blue and red bands on its daily chart. This is its bullish channel. Its daily stochastic has crossed above 80 (green rectangle). Maintaining these levels will imply that a bullish underlying momentum is present and the greater the prospect for higher prices. Gold’s strength corresponds with dollar weakness…

The commodity extends its gains and pushes for another profitable week, helped by a big draw in US oil inventories

The daily gold chart has charted a series of higher troughs followed by higher peaks (green zig-zags). We regard this as an uptrend. The precious metal may look to chart its next daily impulse up (daily +ve impulse scenario). We consider the hourly chart. Following the BoJ’s announcement that it will defend the 50bps level, up from the 25bps level, the precious metal’s trend-following EMAs and the momentum based stochastic…

USOil started the week with a three-day relief rally on demand optimism, but slides since yesterday after the Fed pointed to more rate hikes ahead