Wednesday, November 30, 2011
Stocks Soar on Central Bank Action....Crude Oil and Gold Along For The Ride
Natural gas posted an inside day with a lower close on Wednesday as it consolidated some of Tuesday's rally. Stochastics and the RSI are neutral to bullish signaling that sideways to higher prices are possible near term. Closes above Monday's high crossing at 3.720 are needed to confirm that a short term low has been posted. If January renews this year's decline, monthly support crossing at 3.225 is the next downside target. First resistance is Monday's high crossing at 3.720. Second resistance is the 25% retracement level of the June-November decline crossing at 3.936. First support is last week's low crossing at 3.461. Second support is monthly support crossing at 3.225.
Gold closed sharply higher on Wednesday and above the 20 day moving average crossing at 1747.60 confirming that a short term low has been posted. The high range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI are turning bullish signaling that sideways to higher prices are possible near term. If February extends this week's rally, November's high crossing at 1806.60 is the next upside target. Closes below last week's low crossing at 1670.50 would renew the decline off this month's high. First resistance is today's high crossing at 1754.70. Second resistance is November's high crossing at 1806.60. First support is last week's low crossing at 1670.50. Second support is the reaction low crossing at 1607.30.
Is This December Similar to 2007 & 2008 for Gold & Stocks?