Oil, Gold and Silver Pull Back Toward Support as Natural Gas Nears Resistance

Crude oil, gold and silver are pulling back toward support on Tuesday, November 10, while natural gas climbs into a ceiling that has turned it away for more than a month. WTI crude has $80 as its first support. Gold's second pivot sits down near $3,500, silver has $45 below its trend line, and natural gas runs into $3.26. I'll walk each chart the way I drew it, so you can find these levels yourself.

WTI Crude Oil: $80 Is the First Support

WTI crude oil is trading in the mid-$80s per barrel after pulling back from its recent push higher. The 10-minute chart shows whipsaw price action, a dip and then another push up, but the level lives on the daily chart.

Grab the horizontal drawing tool and run it across the August pivot low. It lands right on $80, a round psychological number. I'd normally want more space between touches, since August isn't that long ago. That same line also produced a bounce back in April and rejected price in January, so it has worked in both directions.

Below $80, an ascending trend line is also acting as support, and price has already bounced off it once. A loss of $80 brings that rising trend line into play, and depending on when it happens, I'm looking around $75 as a potential bounce target.

• $80: psychological level plus the August pivot low
• $75: potential bounce target on a loss of $80

Natural Gas: $3.26 Is the Ceiling

Natural gas is trading in the $3.20 to $3.26 per MMBtu zone, and that zone is the wall. The horizontal pivot sits at $3.26. Price bounced on it, lost it as support, and has yet to open and close a daily candle above it since. Measure that stretch and you get a forty-day period of price beating against the pivot, rejected lower every single time.

A second line stacks on top. An ascending trend line that held as support earlier has flipped to resistance and started rejecting price. Extend it out and it converges with that same horizontal pivot. With nat gas still pumping, $3.26 is my key target, and to me that level carries a lot of resistance. Natural gas can make major moves, so be very careful trading this one.

How Far Can Silver Fall Below Its Trend Line?

The question I keep putting to myself on this board is which metal gets the money right now, gold or silver. Silver has already fallen below $50 an ounce, its first trip under that level since November of last year. Gareth Soloway said it would go below $50 when it was trading much higher, and it did.

That break changes the map for silver: the support above $50 is behind us, and my add level moves lower. On my chart, silver is riding a descending trend line and just put in a very nice bounce off it. The level I care about sits beneath that line. A loss of the trend line puts $45 in play as the target, and to me it's a strong level. I'm keeping an eye out on it, and once price gets that low I'll be looking to add more to my physical silver collection.

Where Is Gold's Second Pivot?

Gold is pulling back, trading roughly $4,050 to $4,130 an ounce. The first pivot low has already been hit, and gold bounced off it. Price is pushing down pretty heavily again, so the question for gold is where the second pivot sits.

Silver and gold are both sliding while oil is down too. Those markets sometimes move in opposite directions, so seeing them fall together stands out.

Drag the horizontal line down from the first pivot to the next shelf and it lands around $3,500, a level that comes off a prior wick high. A break of the first pivot sends me to that range, where I see a nice level of support. Gold is still well above it, so this is a level to wait for.

Platinum Is Back on Its Trend Line

Platinum is the cleanest trend-line lesson on the board. Go from one pivot to the next and extend the line; that sets the angle. Price came back to that line, bounced, and then nearly doubled. When platinum pulled back, support came in at that same line.

Keep extending it to now and what do you know? Price is back on it, slicing right through these candles. The next couple of days, heading into the rest of the week, are very important candles for platinum.

Where Is Copper Support on the Weekly Chart?

Copper sits in an ascending parallel channel on the weekly chart and is starting to push down. The level I'd watch is a little far away: the midline of the channel. Price has respected that midpoint for a while, rejecting right before it, rejecting right above it, and bouncing almost right at it. Measure from here to the midline and you get a potential decline of roughly 10%, and at that level I'd expect some support.

Wheat (WEAT): Support Has Flipped to Resistance

The Teucrium Wheat ETF (WEAT) gives direct exposure to wheat futures, and it's my way to trade the wheat market. The support on this chart has failed, and that changes the read. Its ascending trend line was support and bounced price once, then a couple of candles tried to hold it and lost. That former support is now resistance at around $23 on the fund.

Wheat stays on my radar for reasons beyond the chart. In my view, inflation and money printing are in the background, and nobody knows whether there will be escalation in the Russia and Ukraine region, the breadbasket of the world. That's my risk lens; the level is what I trade.

Levels That Matter

Don't Swing for the Fences

WTI crude oil has first support at $80, gold's second pivot sits near $3,500 and silver eyes $45. Natural gas still has to open and close a daily candle above $3.26 to break its ceiling. On every one of these charts I'd rather let the level come to me than chase it, because trading them comes down to singles and doubles.