Monday, December 19, 2011

Crude Oil, Natural Gas and Gold Market Commentary For Monday Evening Dec. 19th

Crude oil closed slightly higher due to short covering on Monday as it bounces off support marked by the 38% retracement level of the October-November rally crossing at 92.68. The high range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI are oversold but remain bearish signaling that sideways to lower prices are possible near term. If January extends this month's decline, the 50% retracement level of the October-November rally crossing at 89.37 is the next downside target. Closes above the 20 day moving average crossing at 98.10 are needed to confirm that a short term low has been posted. First resistance is the 20 day moving average crossing at 98.10. Second resistance is last Tuesday's high crossing at 101.25. First support is the 38% retracement level of the October-November rally crossing at 92.68. Second support is the 50% retracement level of the October-November rally crossing at 89.37.

Gold closed lower on Monday and the low range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible near term. If February extends this month's decline, September's low crossing at 1543.30 is the next downside target. Closes above the 20 day moving average crossing at 1688.70 are needed to confirm that a low has been posted. First resistance is the 10 day moving average crossing at 1695.50. Second resistance is the 20 day moving average crossing at 1688.70. First support is last Thursday's low crossing at 1562.50. Second support is September's low crossing at 1543.30.

Natural gas closed lower on Monday as it extends this year's decline. Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible near term. If January extends this year's decline, monthly support crossing at 2.409 is the next downside target. Closes above the 20 day moving average crossing at 3.425 are needed to confirm that a short term low has been posted. First resistance is the 10 day moving average crossing at 3.271. Second resistance is the 20 day moving average crossing at 3.425. First support is today's low crossing at 3.050. Second support is monthly support crossing at 2.409.

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