Dwayne Buzzell Blog | Trading commodities | TalkMarkets

Dwayne Buzzell

Forex Trader
Member's Links: Forex Trader

An economist, Forex trader and Forex writer, I have a keen eye for spotting international trading trends, particularly since shadowing my mother’s work over the past 20 years with one of the largest fashion groups.

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Trading commodities

Date: Friday, July 29, 2016 8:54 AM EDT

Investors are  trading commodities in the stock exchange. Due to the global economic crisis in 2008, trade in goods has increased, gold has increased in value, oil is stronger than the beginning of 2009 and coffee  have reached their maximum value. It is now easier than ever trading commodities. They are among the financial instruments to which the increased demand. Trading commodities is much easier and more profitable than traditional methods such as direct investment capital into the bank account. Investors do not have physical possession of goods or earn money through changes in prices of all commodities. The Internet allows being traded 24 hours a day 5 days a week from anywhere in the world. Online trading platforms have been developed to provide you with maximum comfort in trading.

Money is earned through changes in prices of goods and generate revenue selling and buying price. The market has no physical location and can be traded from anywhere but the Internet allows trading is allowed 24 hours a day 5 days a week. It is possible to reach different investment options for oil by selecting the appropriate tool for the beginning of the analysis. With a free demo account, you can acquire sufficient experience in the market and examine and develop individual strategies. All you can do this using virtual money and no risk. Moreover, you can get free advice when you call our support team. Brokerage firms charge a fee intermediary. Take advantage of our promotions and without intermediaries immediately start to increase their profit.

GOLD

Among the most trading commodities in the world is the gold that with the volume of traffic occupies the third place among all financial instruments with 9.12%. Gold is considered a low-risk investment, and as such is preferred by many investors. In recent years, commodity futures trading recorded increased demand, including those with the most gold The price of gold since the beginning of the week is not much moved in anticipation of this week's meeting of the ECB. The price of gold for some time now is supported in the announcements of new moves to increase liquidity by major central banks such as the ECB, BOE, and BOJ. In addition and disposal of interest rate increase by the Federal Reserve's positive effect on the price of this precious metal. The price of gold remained near the lowest level in the last three weeks. The dollar's decline, which occurred due to the worse than expected results of factory production in the area of ​​Philadelphia in the United States temporarily strengthened the price of this precious metal prices, however, soon began to fall again. The decision of the ECB, for the time being, does not change monetary policy also did not have too great an impact on gold.

Indicator

Signal

SMA 20 

BUY

SMA 50  

SELL

SMA 100

SELL

MACD( 12;26;9)

SELL

RSI (14)

NEUTRAL

Stochastic ( 9;6;3)

BUY

 

GOLD  BUY 1315

1337 resistance
1327 resistance
1308 support  
1291 support

 

Crude oil

Oil occupies the largest part of the listed trading commodities with volume of 14.34% of total trading. Oil is the most desirable investment on the stock market! The main reason why oil is the preferred investment is the fact that oil is the most important product and raw materials for commerce and industry. Therefore, it is also called black gold. The whole concept of the importance of oil prices and the impact on global politics and economics is that it belongs to scarce resources. While he could be replaced in other raw materials, oil will remain one of the most important factors in the world economy and politics. Oil holds for risky investment because of too many factors that affect its price, but with the help of analysis for this instrument, you can be much higher than other products

The price of crude oil fell despite remained above $45 per barrel. For the downward trend of energy prices is responsible excessive supply the global market. Baker Hughes, a company that is engaged in servicing oil rigs in the United States showed renewed weekly increase the number of active wells. Inventories of fuel in the US, Europe, and Asia are still extremely high despite the summer season where fuel demand is growing. Despite the growth in the number of wells and their total activity is reduced and projected by economists expected that during August to reach further reduction activities and to the tenth month in a row. It is expected that the production of shale reduced by 99000 barrel to 4.55 million barrel. The price of crude oil during the morning entered a correction after having previously increased under the influence of yesterday's US government report which showed that during the last week there was a decline in crude inventories in the amount of 2.3 million barrels. Yet concerns about excessive supply global markets influenced that this growth will be limited and during today's afternoon came to price corrections.

Indicator

Signal

SMA 20 

SELL

SMA 50  

SELL

SMA 100

SELL

MACD( 12;26;9)

SELL

RSI (14)

SELL

Stochastic ( 9;6;3)

SELL

 

Crude oil sell 45.46

45.75 resistance
45.37 resistance
44.23 support  
43.81 support

 

COFFEE

According to the report, the month started relatively strongly, by starting from $118.53 to the end of June reached the level of $ 132.04 which is the fifth consecutive month of growth. These trends in the international coffee market are primarily the result of strong growth in the Brazilian real against the US dollar. It was also reached its highest level since July 2015. A stronger Brazilian real suppressing the desire of producers to the goods sold in foreign markets.

The market reacted to the appearance of the first frosts in Brazil, even though, at first glance, the small-scale damage. The most significant changes were observed in groups varieties. Thus, the price of Colombian coffee on average increased by 8.6%, Brazil 7.2%, while the price of other varieties of Arabica in June rose an average of 6.6%.Price variety of coffee Vietnam, Indonesia, and Kenya on average rose 2.4%. Coffee prices continued to rise, and in July, amounted to $146  per pound.

 

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