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

Support & Resistance is one of the widely used concepts in commodity trading. Most traders draw horizontal lines to explain these levels.

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

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

If a resistance level is broken commodity price will move higher and the resistance level will turn to a support.

If a support level is broken commodity price will move lower and this level will turn to a resistance.

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

Once commodity price has broken through a support or a resistance then it is likely that the commodity prices will continue to move in that particular direction until such a time when price gets to the next support or resistance level.

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

Commodities Trading Technical Analysis & How to Generate Signals

These levels are calculated a commodity trend lines method.

Upwards Commodities Trading Trend

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

Upwards Commodity Trading Trend

Downward Commodities Trading Trend

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

Downwards Commodity Trading Trend