Monday, October 31, 2011

Crude Oil, Natural Gas and Gold Market Summary For Monday Oct. 31st

Crude oil was lower due to 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 87.00 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 Monday morning trading is 93.09

First support is the 10 day moving average crossing at 90.28
Second support is the 20 day moving average crossing at 87.00

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Natural gas was higher overnight as it extends last Friday's short covering rally. Stochastics and the RSI are turning bullish signaling that sideways to higher prices are possible near term.

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

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 Monday morning trading is 3.878

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

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Gold was lower due to profit taking overnight as it consolidates some of the short covering rally off September's low. Stochastics and the RSI are overbought but remain neutral to 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 the reaction low crossing at 1604.70 would confirm that a short term top has been posted.

First resistance is last Friday's 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 Monday morning trading is 93.09

First support is the reaction low crossing at 1604.70
Second support is September's low crossing at 1535.00

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