Tuesday, May 8, 2012

Another "Risk Off" Day Bearish for Crude Oil

Crude oil closed down $0.62 a barrel at $97.32 today. Prices closed nearer the session high again today. Prices Monday hit a 4 1/2 month low of $95.34. The bears have the overall near term technical advantage with the recent price downdraft. It was another “risk off” trading day today and as the U.S. dollar index was higher, both being bearish for crude.

Natural gas closed up 9.4 cents at $2.43 today. Prices closed nearer the session high today and hit a fresh six week high. The bulls gained fresh upside near term technical momentum today. The bears do still have the overall near term technical advantage, however.

Gold futures closed down $35.20 an ounce at $1,604.00 today. Prices closed nearer the session low and hit a fresh four month low today as fresh, serious near term chart damage was inflicted. It was yet another “risk off” trading day today and the key “outside markets” were in a bearish posture for gold as the U.S. dollar index was firmer and crude oil prices were lower. Gold bears have the near term technical advantage and gained more downside momentum today. A two month old downtrend has been re established on the daily bar chart.

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