Thursday, October 28, 2010
Indexes, Crude Oil, Natural Gas and Gold Close Higher on the Back of the Weaker U.S. Dollar
Crude oil closed higher on Thursday and the mid range close sets the stage for a steady opening on Friday. Stochastics and the RSI are neutral to bullish signaling that a short term low might be in or is near. Closes above the reaction high crossing at 83.28 are needed to confirm that a low has been posted. Closes below the reaction low crossing at 79.90 are needed to confirm that a short term top has been posted. First resistance is Monday's high crossing at 83.28. Second resistance is last week's high crossing at 84.80. First support last week's low crossing at 79.90. Second support is the August-September uptrend line crossing near 78.55.
Gold closed higher due to short covering on Thursday but remains poised to extend this month's decline. The high range close sets the stage for a steady to higher opening on Friday. Stochastics and the RSI remain neutral to bearish signaling that sideways to lower prices is possible near term. If December extends this month's decline, the 25% retracement level of this year's rally crossing at 1303.50 is the next downside target. Closes above Monday's high crossing at 1349.50 would confirm that a short term low has been posted. First resistance is the 20 day moving average crossing at 1343.40. Second resistance is Monday's high crossing at 1349.50. First support is last Friday's low crossing at 1315.60. Second support is the 25% retracement level of this year's rally crossing at 1303.50.
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