The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.
NEW YORK (
) -- Global commodity markets have spent four days holding higher ground and consolidating the breakout moves that started on Feb. 14.
Gold futures are holding around the 1400 price point, with a very strong long trend and very clear long momentum reads that would take a break below 1370 to switch into short mode. It may be unwise to try to buy a new breakout from these levels. Instead traders may be looking to buy the dip on any tests of 1390.
Silver bullion futures maintain their bullish undertones, with price action holding around 33.30 after a period of trade that consolidated a very strong move that broke the 31.00 price range. Tests of support are being bought at this point in time, in a signal that the global market has found fair value on silver. As with gold, it may be unwise to look to buy at these extended levels, with a more cautious view being the purchase of any tests of support around the 31.50 price point.
West Texas Intermediate futures, the most liquid of all global oil contracts, have shown why investors and traders need to mix a blend of technical and fundamental analysis into their daily work. After an explosive move higher that broke through 88.00 resistance, the futures are now easily trading around 98.00. The asset class has taken on investment-grade characteristics, and is holding a solid long trend on all time frames. Oil has strong sentiment to the long side, solid price actio, and momentum reads that are buying the dips on any tests of support.
In general, hard commodity prices look to have found fair value, albeit at extended levels in the near term. These levels may become the norm as long as social unrest continues to dominate headlines.
Intraday Commodity SMI
The SMI detail shown below forms part of TheLFB subscription service that analyzes global market trade, including intraday trends, momentum and price action points that use 1-hour charts for analysis.
- Gold Bullion (Mixed)
Long momentum, flat trend. Long from 1412 targeting 1416. Short from 1404 targeting 1396
- Silver Bullion (Mixed)
Long momentum, flat trend. Long from 33.50 targeting 33.75. Short from 32.70 targeting 32.40
- WTI Crude Oil (Long)
Long momentum, long trend. Long from 99.50 targeting 100.80. Short from 97.30 targeting 96.25
- 10-year Treasury Note
Long momentum, long trend. Long from 120.25 targeting 120.32. Short from 120.00 targeting 119.85
Marco Hague is one of the founders and principals of The London Forex Broadsheet (commonly known as TheLFB), a global forex trader portal with headquarters in the U.S. Hague began his career with the Bank of England dealing with foreign exchange control, and he has been trading for the last three decades. He has been involved with institutional risk asset ratio analysis and the implementation and maintenance of institutional trade desks globally.