Monday, November 21, 2011

Natural Gas Bulls Score an "Outside Up Day" in Monday Trading

Crude oil [now trading January contract] closed down $0.53 a barrel at $97.14 today. Prices closed nearer the session high today. A stronger U.S. dollar index again today and a sell off in the U.S. stock market pressured energies. Recent price action in crude does hint that a near term market top is in place. Crude bulls do still have the overall near term technical advantage, but they have faded.

Natural gas [also trading January contract] closed up 7.7 cents at $3.573 today. Prices closed nearer the session high today after hitting another fresh contract low early on. Today's price action scored a bullish “outside day” up on the daily bar chart and if there is good follow through buying on Tuesday then that would confirm a bullish “key reversal” up on the daily bar chart, which could be one early technical clue that a market low is finally in place. But right now the bears still have the solid overall near term technical advantage.

December gold futures closed down $56.40 an ounce at $1,668.90 today. Prices closed near the session low today as the market was hammered to a fresh four week low. The key “outside markets” were bearish for gold today, as the U.S. dollar index was firmer and crude oil prices were lower. Near term technical damage has been inflicted recently, including more today. Bears now have the slight near term technical advantage.


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