Wednesday, January 15, 2014

Mid Week Market Summary - Crude Oil, Natural Gas, Gold, Wheat and Coffee

Crude oil closed sharply higher on Wednesday and above the 10 day moving average crossing at 93.53 signaling that a low might be in or is near. Today's high range close sets the stage for a steady to higher opening when Thursday's night session begins. Stochastics and the RSI are oversold but are turning neutral to bullish hinting that a short term low might be in or is near. Closes above the 20 day moving average crossing at 96.25 are needed to confirm that a short term low has been posted. If March resumes the decline off December's high, the June 2013 low crossing at 89.48 is the next downside target. First resistance is today's high crossing at 94.82. Second resistance is the 20 day moving average crossing at 96.25. First support is last Thursday's low crossing at 91.47. Second support is the June 2013 low crossing at 89.48.

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Natural gas closed lower on Wednesday as it consolidates some of the rally off last week's low. The low range close sets the stage for a steady to lower opening on Thursday. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near-term. If March extends the aforementioned rally, the reaction high crossing at 4.403 is the next upside target. Closes below the 10 day moving average crossing at 4.213 would confirm that a short term top has been posted. First resistance is the reaction high crossing at 4.403. Second resistance is December's high crossing at 4.550. First support is the 10 day moving average crossing at 4.213. Second support is last Friday's low crossing at 3.936.

Gold closed lower due to profit taking on Wednesday as it consolidated some of the rally off December's low. The high range close sets the stage for a steady to higher opening when Thursday's night session begins trading. 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, December's high crossing at 1266.70 is the next upside target. Closes below the 20 day moving average crossing at 1223.90 would confirm that a short term top has been posted. If April renews the decline off August's high, weekly support crossing at 1179.40 is the next downside target. First resistance is Tuesday's high crossing at 1255.20. Second resistance is December's high crossing at 1266.70. First support is the 20 day moving average crossing at 1223.90. Second support is December's low crossing at 1182.30.

Coffee closed lower on Wednesday and the mid range close set the stage for a steady opening on Thursday. Stochastics and the RSI are diverging and are turning neutral to bearish signaling that sideways to lower prices are possible near term. Closes below the 20 day moving average crossing at 11.65 would confirm that a short term top has been posted. If March extends the rally off November's low, September's high crossing at 12.40 is the next upside target.

Wheat closed lower on Wednesday ending a two day short covering bounce off last Friday's low. Today's low range close sets the stage for a steady to lower opening when Thursday's night session begins trading. Stochastics and the RSI are diverging but are turning neutral to bullish signaling that sideways to higher prices are possible near term. Closes above the 20 day moving average crossing at 5.98 1/4 would confirm that a short term low has been posted. If March extends the decline off October's high, weekly support crossing at 5.54 3/4 is the next downside target. First resistance is the 20 day moving average crossing at 5.98 1/4. Second resistance is the reaction high crossing at 6.12 3/4. First support is last Friday's low crossing at 5.60 1/2. Second support is weekly support crossing at 5.54 3/4.

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