Support and Resistance Commodities Technical Analysis & Support & Resistance Trading Signals

Support & Resistance is one of the widely used concepts in commodities trading. Most traders plot horizontal lines to show these areas.

There is also an indicator used to draw these levels automatically & indicate the resistance and support levels.

When it comes to these levels commodities price can either bounce off these regions or break out through these regions.

If a resistance level is broken commodities trading price will move higher & the resistance level will turn to a support.

If a support level is broken commodities price will move lower & this level will turn to a resistance.

Commodities Price where the majority of investors believe that commodities trading prices will move higher, while resistance levels indicate the commodities trading price at which a majority of investors feel commodities trading prices will move lower.

Once commodities trading price has broken through a support or a resistance then it is likely that the commodities price will continue to move in that specific direction until such a time when it gets to the next support or resistance zone.

The more often a support or resistance level is tested or is touched by the commodities price & bounces, the more major that particular level becomes.

Commodities Technical Analysis & Generating Trading Signals

These levels are calculated a commodity trend lines method.

Upward Commodities Trading Trend

In an upward commodity trend the resistance & support will generally head upwards

Upwards Commodities Trading Trend

Downward Commodity Trading Trend

In a downwards commodity trend the resistance & support will generally head downward

Downwards Commodities Trading Trend