Friday, October 28, 2011

Crude Oil, Gold and Natural Gas Market Commentary For Friday Morning

Crude oil was lower due to light profit taking overnight but remains above the 38% retracement level of the May-October decline crossing at 90.56. Stochastics and the RSI are overbought but remain neutral to bullish signaling that additional short term gains are possible.

If December extends this month's rally, the 50% retracement level of the May-October decline crossing at 95.32 is the next upside target. Closes below the 20 day moving average crossing at 86.22 are needed to confirm that a short term top has been posted.

First resistance is the 50% retracement level of the May-October decline crossing at 95.32 Second resistance is the 62% retracement level of the May-October decline crossing at 100.08

Crude oil pivot point for Friday morning is 92.98

First support is the 10 day moving average crossing at 89.61
Second support is the 20 day moving average crossing at 86.22

Double Tops and Pivot Points Explained

Natural gas was higher due to short covering overnight while extending this month's trading range. Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible near term.

If December renews this year's decline, monthly support crossing at 3.225 is the next downside target. Closes above the reaction high crossing at 4.039 are needed to confirm that a short term low has been posted.

First resistance is the reaction high crossing at 4.039
Second resistance is the 25% retracement level of the June-October decline crossing at 4.133

Natural gas pivot point for Friday mornings trading is 3.774

First support is Thursday's low crossing at 3.724
Second support is monthly support crossing at 3.225

Today’s Stock Market Club Trading Triangles

Gold was lower due to light profit taking overnight but remains above the 50% retracement level of September's decline crossing at 1729.40. Stochastics and the RSI are overbought but remain bullish signaling that sideways to higher prices are possible near term.

If December extends the aforementioned rally, the 62% retracement level of September's decline crossing at 1775.20 is the next upside target. Closes below last week's low crossing at 1604.70 would confirm that a short term top has been posted.

First resistance is the overnight high crossing at 1754.00
Second resistance is the 62% retracement level of September's decline crossing at 1775.20

Gold's pivot point for Friday morning is 1735.40

First support is last week's low crossing at 1604.70
Second support is September's low crossing at 1535.00


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