Thursday, January 26, 2012

Crude Oil, Gold and Natural Gas Market Commentary For Thursday January 26th

March crude oil closed higher on Thursday due to light short covering. Profit taking tempered early session gains and the low range close sets the stage for a steady to lower opening on Friday. Stochastics and the RSI are neutral to bearish signaling that sideways to lower prices are still possible near term. If March extends this month's decline, December's low crossing at 92.95 is the next downside target. Closes above the reaction high crossing at 102.24 are needed to confirm that a short term low has been posted. First resistance is the reaction high crossing at 102.24. Second resistance is this month's high crossing at 103.90. First support is Monday's low crossing at 97.40. Second support is December's low crossing at 92.95.

How To Trade Market Sentiment

April gold closed higher on Thursday as it extends the rally off December's low. The high range close sets the stage for a steady to higher opening on Friday. 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 1636.60 would confirm that a short term top has been posted. First resistance is today's high crossing at 1734.50. 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 1670.50. Second support is the 20 day moving average crossing at 1636.60.

How to Use Money Management Stops Effectively

March natural gas closed lower on Thursday ending a three day short covering rally off Monday's low. Stochastics and the RSI are turned bullish hinting that a low might be in or is near. Closes above the 20 day moving average crossing at 2.807 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 2.807. Second resistance is January's high crossing at 3.153. First support is Monday's low crossing at 2.289. Second support is monthly support crossing at 1.960.

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