Wednesday, November 2, 2011

Wednesday Market Summary - Crude Oil , Natural Gas and Gold

Crude oil closed higher on Wednesday while extending last week's trading range. The high range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI are overbought but are neutral to bullish signaling that sideways to higher prices are possible near term.

If December extends the rally off this month's low, 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 88.48 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. First support is the 20 day moving average crossing at 88.48. Second support is the reaction low crossing at 83.40.

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Natural gas was lower on Wednesday while extending October's trading range. Stochastics and the RSI are turning neutral signaling that sideways trading is 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 25% retracement level of the June-October decline crossing at 4.133. Second resistance is the 38% retracement level of the June-October decline crossing at 4.336. 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 closed higher on Wednesday and the high range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI are overbought but remain neutral to bullish signaling that additional strength is possible near term.

If December extends the rally off September's low, the 62% retracement level of the 2008-2011 rally 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 the 62% retracement level of the 2008-2011 rally crossing at 1775.20. Second resistance is the 75% retracement level of the 2008-2011 rally crossing at 1826.50. First support is the reaction low crossing at 1604.70. Second support is September's low crossing at 1535.00.

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