Fundamentally Crude Oil posted an inside bar on the daily chart. As we mentioned Tuesday, a move above $65.77 could create enough momentum to test the $70 area. Support is found at the low for the move at $61.30 and then $60.70. Further support can be found at $57 and $52. Resistance is just under $70 with further resistance at $72, $74.50, $76, and $80. Just below $84 seems to be the biggest technical ceiling within short-term range. Fundamentally, the market is still in a downtrend and rallies are to be sold.
Technically Crude Oil posted an inside bar on the daily chart and a move below $61.30 will likely hit more sell stops from buyers trying to pick a bottom. A move above $65.77 could create enough momentum to test the $70 area. Support is found at the Tuesday low of $61.30 and then $60.70. Further support can be found at $57 and $52. Resistance can be found near $66, $72, $74.50, $76, and $80. Just below $84 seems to be the biggest technical ceiling within short-term range. Technically, the market is still in a downtrend and rallies are to be sold. Be sure to take a look at the chart following this report as it shows the price of corn and its relationship with crude oil.
December Gold settled $13.50 higher at $754 Wednesday, while December Silver was $1.015 higher at $9.805. We've been talking about the $750 area on December Gold and how a few closes over that price may give us reason to look for a bounce to $800. The rate cut announced Wednesday by the FOMC is also supportive of this idea. Precious metals will most likely continue to trade with a high level of volatility as the market decides between "safe haven" buying, long term buying as a hedge against inflation, margin call selling, and profit taking to invest in other relatively low-priced commodities.
Technical support is found at $723 and $695 with $684 as baseline support. Resistance is the Wednesday high of $775 and again at $795.
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