Thursday, November 17, 2011

Crude Oil Pulls Back Overnight, Bulls Maintain the Advantage

Crude oil was lower due to profit taking overnight as it consolidates some of the rally off October's low. Stochastics and the RSI are overbought but remain neutral to bullish signaling that additional short term gains are possible. If December extends the rally off October's low, the 75% retracement level of the May-October decline crossing at 105.42 is the next upside target. Closes below the 20 day moving average crossing at 95.08 would confirm that a short-term top has been posted. First resistance is the 75% retracement level of the May-October decline crossing at 105.42. Second resistance is the 87% retracement level of the May-October decline crossing at 110.46. First support is the 10 day moving average crossing at 98.04. Second support is the 20 day moving average crossing at 95.08.

Natural gas was higher due to short covering overnight as it consolidates some of this week's decline. Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible near term. If December extends this year's decline, monthly support crossing at 3.225 is the next downside target. Closes above the 20 day moving average crossing at 3.693 are needed to confirm that a short term low has been posted. First resistance is the 10 day moving average crossing at 3.570. Second resistance is the 20 day moving average crossing at 3.693. First support is the overnight low crossing at 3.325. Second support is monthly support crossing at 3.225.

Gold was sharply lower due to profit taking overnight as it consolidates some of the rally off September's low. Stochastics and the RSI are overbought and are turning bearish hinting that a short term top might be in or is near. Closes below the 20 day moving average crossing at 1745.20 would confirm that a short term top has been posted while opening the door for additional weakness during November. If December renews the rally off September's low, the 75% retracement level of September's decline crossing at 1826.50 is the next upside target. First resistance is the 75% retracement level of September's decline crossing at 1826.50. Second resistance is the 87% retracement level of September's decline crossing at 1875.10. First support is the 20 day moving average crossing at 1745.20. Second support is the reaction low crossing at 1681.20.


Don't miss our recent post "How to Trade Oil ETFs When $100 Per Barrel is Reached"

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