Tuesday, December 3, 2013

Mid Week Market Commentary - Crude Oil, Natural Gas and Gold for Tuesday Evening December 3rd

Crude oil closed sharply higher on Tuesday and above the reaction high crossing at 95.63 confirming that a low has been posted. The high range close sets the stage for a steady to higher opening when Wednesday's night session begins. Stochastics and the RSI are diverging and have turned bullish signaling that sideways to higher prices are possible near term. If January extends the rebound off last week's low, the 38% retracement level of the August-November decline crossing at 97.96 is the next upside target. If January renews the decline off August's high, the 75% retracement level of the April-August rally crossing at 91.18 is the next downside target. First resistance is today's high crossing at 96.19. Second resistance is the 38% retracement level of the August-November decline crossing at 97.96. First support is last Wednesday's low crossing at 91.77. Second support is the 75% retracement level of the April-August rally crossing at 91.18.

Natural gas closed lower due to profit taking on Tuesday as it consolidates some of the rally off October's low. The mid range close sets the stage for a steady opening on Wednesday. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near term. If January extends the rally off November's low, the reaction high crossing at 4.045 is the next upside target. Closes below the 20 day moving average crossing at 3.731 would confirm that a short term top has been posted. First resistance is the reaction high crossing at 4.045. Second resistance is October's high crossing at 4.092. First support is the 10 day moving average crossing at 3.838. Second support is the 20 day moving average crossing at 3.731.

Gold closed lower on Tuesday as it extends the decline off August's high. The mid range close sets the stage for a steady to lower opening when Wednesday's night session begins trading. Stochastics and the RSI are oversold, diverging but remain neutral to bearish signaling that additional weakness is still possible near term. If February extends the decline off August's high, June's low crossing at 1187.90 is the next downside target. Closes above the 20 day moving average crossing at 1266.60 are needed to confirm that a low has been posted. First resistance is the 10 day moving average crossing at 1243.60. Second resistance is the 20 day moving average crossing at 1266.60. First support is today's low crossing at 1214.60. Second support is June's low crossing at 1187.90.

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