Monday, January 30, 2012
Crude Oil, Gold and Natural Gas All Start The Week Lower
The Fed, the S&P 500, & Why Gold Is Shining Bright
Gold closed slightly lower due to light profit taking on Monday as it consolidates some of the rally off December's low. The mid range close sets the stage for a steady opening on Tuesday. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near term. If April extends the rally off December's low, the 62% retracement level of the September-December decline crossing at 1772.28 is the next upside target. Closes below the 20 day moving average crossing at 1654.80 would confirm that a short term top has been posted. First resistance is today's high crossing at 1742.80. Second resistance is the 62% retracement level of the September-December decline crossing at 1772.80. First support is the 10 day moving average crossing at 1689.30. Second support is the 20 day moving average crossing at 1654.80.
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Natural gas closed lower on Monday as it consolidated some of the rally off last week's low. Stochastics and the RSI remain neutral to bullish hinting that a low might be in or is near. Closes above the 20 day moving average crossing at 2.770 are needed to confirm that a short term low has been posted. If March renews the multi year decline, monthly support crossing at 1.960 is the next downside target. First resistance is the 20 day moving average crossing at 2.770. Second resistance is January's high crossing at 3.153. First support is last Monday's low crossing at 2.289. Second support is monthly support crossing at 1.960.
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