Technical Global Commodities Review

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 ( TheLFB-Forex) -- The following examines the technical indicators of charts for gold bullion ( XAU), silver bullion ( XAG) and oil ( WTI).

Gold Bullion Four-Hour Chart:

Trading at the swing point areas of April and May 2011 that created support areas from which to break higher and test 1560 resistance.

The 100-day simple moving average area at 1475 will create a solid base for long momentum to build from technically, if global fundamentals align and create bullion buying sentiment. The 50-day SMA area at 1520 will be major resistance.No mid-term long signals will form on XAU until a weekly chart closes above 1530. No mid-term short signals will form until a weekly chart closes below 1460.

ABC Potential: The A leg dropped lower from 1560 to test 1490 support. The B leg reversed higher to test 1515 resistance. The C leg may be able to test 1460 now that the B leg could not break higher than a test of the 38% Fibonacci area.

Call To Action: Look to sell into the next near-term upside test of 1500 that fails to hold a daily chart close. Understanding that the overall outlook on bullion remains long, any short positions need reduced exposure and near-term targets.

The last four-hour chart trade signal was generated June 24 with a break below 1515 that targeted 1490, which has completed its cycle.

Silver Bullion Four-Hour Chart

Trading in the middle of a price channel between 32 and 39 formed since May, which now looks to be running out of momentum.

The 200-day SMA area at 31.80 will create a solid base for long momentum to build from technically, if global fundamentals align and create bullion-buying sentiment. The 50 and 100-day SMA areas at 37.50 will be major resistance.

No mid-term long signals will form on XAG until a weekly chart closes above 39.50. No mid-term short signals will form until a weekly chart closes below 31.50.

ABC Potential: A five-wave move lower has just completed with a test of 33.50 support. The new A leg move from 35.20 down to 33.50 may reverse higher to form the B leg, which will determine the technical potential in the C leg. If the moves higher to test resistance fail at 39.00 the C leg may be able to test 33.00.

Call To Action : Near-term intra-day signals are all that XAG is offering. Buy tests of support and sell tests of resistance at the previous 24-hour session lows and highs. These charts show that a short trend is in place that may be difficult to easily reverse, but may not have enough momentum to break major support at 32.00.

The last four-hour chart trade signal was generated June 24 with a break below 35.00 that targeted 33.50 which has completed its cycle.

WTI Four-Hour Chart

Trading at the top of a price channel between 90 and 96, formed in June. This is also the bottom of a price channel between 95.00 and 103.00, formed in May and June 2011. This is now a resistance area.

The 200-day SMA area at 93.50 will create a solid base for long momentum to build, if global fundamentals align and create oil buying sentiment. The 50 and 100-day SMA areas at 100.50 will be major resistance.

No mid-term long signals will form on WTI until a weekly chart closes above 103.50. No mid-term short signals will form until a weekly chart closes below 88.50.

ABC Potential: Choppy and overlapping chart patterns are caught in a 2-month trading range with no clear technical signals.

Call to Action: Near-term intraday signals are all that WTI is offering. Buy tests of support and sell tests of resistance at the previous 24-hour session lows and highs. These charts show that fair value has been found on WTI.

The last four-hour chart trade signal was generated June 29 with a break above 96 that targeted 98, which failed to trigger.

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.

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