Kalkine’s ‘Global Commodity Technical Analysis Report’

Is it Prudent to Consider Commodities or Equities during the time of inflation and economic uncertainties? How to spot the market reversals and benefit from either side of the price trends? These are some of the questions looming in the mind of curious investors!

Introducing our new Global Commodity Technical Analysis Report

Kalkine’s ‘Global Commodity Technical Analysis Report’ provides a technical analysis-driven research product on Global Commodities. This product is designed post considering sufficient risk appetite and financial flexibility, who typically seek opportunities for a short time span. This report includes research on agricultural and non-agricultural commodities futures contract listed on various global exchanges. These commodities include Gold, Silver, Copper, Aluminium, Lead, Nickel, Zinc, Crude Oil, Natural Gas, Sugar, Soybean, Wheat, etc., listed on the exchanges including COMEX, LME, NYMEX, ICE, and CBOT.

Which factors influence the Commodities Price Movements?

Selecting commodities is a challenging task amid highly volatile financial market environment. The commodity price movement depends upon the evolving fundamentals including supply and demand scenario, inventory levels, production etc. as well as macroeconomic factors such as socio-political stability, inflation, currency, and interest rate changes, etc. Besides, sentiments of the market participants including the two prominent emotions that is greed and fear also influence the commodity prices. Prices often move up and down forming repeated patterns and typically technical analysis is a way to identify these price movements.

Over the past one-year, S&P GSCI Precious Metals Index (Spot) yielded a double-digit return of 11.16% (till May 7, 2021, Source: Refinitiv, Thomson Reuters). However, the price of commodities tend to be more volatile than other asset classes such as equities, currencies, and bonds etc. Therefore, investors should consider seeking professional help to gauge the market trends. Kalkine’s Global Commodity Technical Analysis Report prepared after extensive research and backtesting by a team of qualified commodity analysts engaged in quantitative research might be helpful!

Considering the above, Kalkine’s Commodity Technical Analysis Report Offers Below Features:

1. Technical Research: This report is purely based on an analysis of technical tools such as price action, indicators, support level, resistance level, candlestick patterns, volumes, relative strength index (RSI), simple moving averages (SMA), etc.
2. Swing Trading Opportunity: By virtue of seizing short-term gains in a commodity, swing trading provides an edge over fundamental analysis as investors may be able to generate desired returns in a short timeframe.
3. Assessment of the Global Demand and Supply Scenario: The current inventory levels influences the price of commodities. For example: If the increase in crude oil inventories is witnessed, it indicates the demand of crude oil is weak which is a bearish sign for the prices. The report aims to provide insights on the Global demand and supply scenario which may have a bearing on the commodity prices.
4. Trending Themes: The report aims to cover commodities that are trending while also considering the cyclical nature of certain commodities and counter-cyclical opportunities such as Gold.
5. Investing Edge from Long or Short Positions: Commodities are traded in spot as well as future platforms, therefore they offer a hedging tool for investors which allows them to minimize risk by entering the trade in either or both directions i.e., as a short position or as a long position. 
6. Pre-defined Risk-Reward Scenario: Risk-Reward ratio represents the prospective reward an investor may achieve for the risks undertaken. Investors can weigh their decisions in the light of an appropriate entry-level, target prices, and a pre-defined stop loss.
7. Diversification: In general, the commodity prices are inversely correlated with equity and currency segments and therefore act as a great diversification tool for investors to withstand market volatility. 

Few Global Commodities that Witnessed a Decent Movement in a Short Timespan

Some of the Globally listed commodities that have recently witnessed a good upside movement in a short time include Gold Futures (GCm1) and Silver Futures (SIn1) as depicted in below charts. Gold is one of the most liquid commodities traded on the COMEX platform and its June futures contract GCm1 provided a gain of ~4.46% within a week after the breakout of a descending channel by an upside. The movement was also supported by increasing volume along with the 21-period SMA trading below the Market Price on the weekly chart.

Silver has a wide usage for industrial purposes and trades in the COMEX futures platform. Silvers’ COMEX July futures contract SIn1 gave a return of ~7.54% after taking the support of an upward trendline in a weeks’ time. The movement was supported by technical indicators such as RSI (14-Period), Volumes and 21-period SMA.

The returns generated by the above commodity picks (Gold and Silver) are higher than the ~2.19% returns yielded by the benchmark index ‘S&P GSCI Precious Metals Index (Spot)’ over the same time frame.

How does Kalkine’s Global Commodity Technical Analysis Report Help?

Kalkine’s Global Commodity Technical Analysis Reports offer opportunities around the potential commodity themes. This report aims to cover commodities after an analysis of technical tools, while also providing insights on the overall demand and supply scenario, periodic inventory levels, macro-economic indicators, major global news, and events impacting the market sentiments.

It must be noted that recommendations provided under this product are solely based on technical parameters, and fundamental performance of the commodities have not been considered in the decision-making process. Key risks which could impact the commodity prices include market risks, regulatory risks, inventory related risk, currency risks, and socio-political risks etc.

Note: Trading decisions require a thorough analysis by investors. Technical reports in general chart out metrics that may be assessed by investors before any commodity evaluation. The above are illustrative analytical factors used for evaluating the commodities; other parameters can be looked at along with additional risks per se. Past performance is neither an indicator nor a guarantee of future performance.