[Premium] Spicing Up The Commodity Trade

Here's Gold, which is back below its 32,500 level on the weekly chart, but has held support at 31,600 on the daily chart. Momentum is in a bullish range and the 200-day is rising, both of which are supportive of higher prices in the near-term.

Yet from an intermarket perspective, the signals remain mixed.

Click on chart to enlarge view.

Here's Silver, which remains rangebound near a flat 200-day moving average. Base metals as a group are also mixed. Can Gold rally without participation from the rest of the space? Possibly, but I think it's the lower probability outcome.

In Currencies, the short-term bounce in the four pairs we follow are continuing, however, the weight of the evidence are pointing toward a stronger Rupee over the intermediate-term.

In the coming weeks, we're going to be looking for an opportunity to short EUR/INR as the 200-day moving average catches down and prices break back below 77.85.

The same can be said for USD/INR, which is back above 69 for the time being. We'll see how things develop, but price action remains weak despite waning momentum to the downside. Sideways action would be the most constructive action for the bulls.

One trade that does seem to be setting up is Cardamom, which recently broke out to new all-time highs. Momentum is diverging slightly, which suggests some consolidation or a pullback is likely in the near-term. If we do get a move back toward 1,590, we'd be buying that weakness with a 2,070 long-term target.

Patience is not only paying in Equities, but in Commodities and Currencies as well. In the weeks ahead, these are some of the developments we'll be watching and taking advantage of if they trigger.

Thanks for reading and please let us know if you have any questions.

Allstarcharts Team