Crude Oil Falls as China’s Factory Activity Shrinks

Crude oil fell to a one week low [We are now following the May crude oil contract] on Thursday after manufacturing in the euro area and China contracted this month, signaling that fuel consumption may decline. Initial indications out of China indicated that industrial activity decreased.

Crude's decline accelerated as equities retreated and the dollar climbed against the euro. The low range close sets the stage for a steady to lower opening on Friday.

Stochastics and the RSI are turning neutral signaling that sideways to lower prices are possible near term. Closes below last Thursday's crossing at 104.29 are needed to confirm that a short term top has been posted. If May renews this winter's rally, the 2011 high crossing at 113.75 is the next upside target.

First resistance is this month's high crossing at 110.95. Second resistance is the 2011 high crossing at 113.75. First support is last Thursday's low crossing at 104.29. Second support is the reaction low crossing at 98.38.

We continue to like the long term chart formation, which we believe will eventually push this market higher until early April. We are looking for crude oil to make its highs probably somewhere in the April, May period. With a Score of -70, this commodity is in an emerging trend.

 With our monthly Trade Triangle still in a positive mode, we expect to see further gains in crude oil. Long term traders should be long this market with appropriate money management stops.

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Crude Oil Weekly Technical Outlook For Sunday March 18th

From the staff at Oil N Gold.......

Crude oil dripped to 103.78 last week as consolidation from 110.55 extended but quickly recovered. Such consolidation might have completed already. Initial bias is mildly on the upside this week for retest of 110.55. Break will confirm resumption of recent rally and should target 114.83 key resistance next. On the downside, though, below 103.78 will extend the correction to 61.8% retracement of 95.44 to 110.55 at 101.21.

In the bigger picture, the medium term up trend from 33.2 shouldn't be completed yet. Rise from 74.95 is indeed tentatively treated as resumption of such rally. Sustained break of 114.83 will target 61.8% projection of 33.2 to 114.83 from 74.95 at 125.40. On the downside, though, break of 95.44 support will indicate that correction pattern from 114.83 is going to extend further with another falling leg to 74.95 and below before completion.

In the long term picture, crude oil is in a long term consolidation pattern from 147.27, with first wave completed at 33.2. The corrective structure of the rise from 33.2 indicates that it's second wave of the consolidation pattern. While it could make another high above 114.83, we'd anticipate strong resistance ahead of 147.24 to bring reversal for the third leg of the consolidation pattern.

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Rumor of Strategic Oil Reserves Being Released Push Market Lower

As we have stated before the 104 area is an area of support for the April contract. Today’s non announcement rumor of strategic oil reserves being released by Britain and the US push this market down to the 104 support level. We still believe that this market is going to move higher.

We continue to like the chart formation which we believe will eventually push this market higher until early April. We are looking for crude oil to make its highs probably somewhere in the April May period.

With a trading score of -70 we believe this market is regrouping to move higher later in the month. With our monthly trade triangles in a positive mode, we expect to see further gains in crude oil. Long term traders should be long this market with appropriate money management stops.

Crude oil [April contract] closed lower on Thursday as it extends the trading range of the past two weeks. The mid range close sets the stage for a steady opening on Friday. Stochastics and the RSI remain bearish hinting that a short term top might be in or is near.

Closes below last Wednesday's crossing at 104.35 are needed to confirm that a short term top has been posted. If April renews this winter's rally, the 2011 high crossing at 114.09 is the next upside target.

First resistance is this month's high crossing at 110.55. Second resistance is the 2011 high crossing at 114.09. First support is today's low crossing at 103.78. Second support is the reaction low crossing at 97.73.

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Was There an Explosion or Not?

Commodity traders rode a see saw session as markets spiked on news of an oil pipeline explosion in Saudi Arabia. Only to trader lower as Saudi officials deny that any event took place at all.

Still, crude oil closed higher on Thursday extending the rebound off Tuesday's low. The high range close sets the stage for a steady to higher opening on Friday. Stochastics and the RSI are turning neutral to bullish signaling that sideways to higher prices are possible near term.

If April extends this winter's rally, the 2011 high crossing at 114.09 is the next upside target. Closes below the 20 day moving average crossing at 103.09 would confirm that a short term top has been posted.

First resistance is last Friday's high crossing at 109.95. Second resistance is the 2011 high crossing at 114.09. First support is the 10 day moving average crossing at 106.78. Second support is the 20 day moving average crossing at 103.09.

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Why Has Crude Oil Stalled?

Let's take look at crude oil with a critical eye and find out why this market has stalled.

The crude oil market is now getting into an oversold condition, which may be setting the stage for a perfect buying opportunity. We remain positive on this market. We are expecting oil to regroup over the $105 level and generate enough energy to push it to new highs over the $110 area. We are looking for crude oil to make its highs probably somewhere in the May period.

With a Score of +75, this market is in an emerging trend to the upside. We remain longer term positive on this market. With our monthly and weekly Trade Triangles in a positive mode, we expect we will see further gains in crude oil. All traders should be long this market with appropriate money management stops.

Crude oil closed higher on Wednesday ending a two day correction off last week's high. The high range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI are overbought and are turning bearish hinting that a short term top might be in or is near. Closes below the 20 day moving average crossing at 102.52 would confirm that a short term top has been posted.

If April extends this winter's rally, the 2011 high crossing at 114.09 is the next upside target. First resistance is last Friday's high crossing at 109.95. Second resistance is the 2011 high crossing at 114.09. First support is the 10 day moving average crossing at 106.05. Second support is the 20 day moving average crossing at 102.52.

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Low Range Close in Crude Oil Gives The Bears Technical Advantage For Tuesday

Crude oil [April contract] posted an inside day with a lower close on Monday as it consolidated some of the rally off October's low. The low range close sets the stage for a steady to lower 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 this month's rally, the 2011 high crossing at 114.09 is the next upside target. Closes below the 20 day moving average crossing at 101.75 would confirm that a short term top has been posted. First resistance is last Friday's high crossing at 109.95. Second resistance is the 2011 high crossing at 114.09. First support is the 10 day moving average crossing at 104.95. Second support is the 20 day moving average crossing at 101.75.

Natural gas [April contract] closed lower on Monday and the low range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI are neutral signaling that sideways trading is possible near term. If April renews the multi year decline, monthly support crossing at 1.960 is the next downside target. Closes above the reaction high crossing at 2.942 are needed to confirm that a short term low has been posted. First resistance is the reaction high crossing at 2.942. Second resistance is January's high crossing at 3.210. First support is January's low crossing at 2.438. Second support is monthly support crossing at 1.960.

Gold [April contract] closed lower due to profit taking on Monday as it consolidated some of this week's rally. The low range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI are diverging 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 75% retracement level of the September-December decline crossing at 1825.20 is the next upside target. Closes below the reaction low crossing at 1706.40 are needed to confirm that a short term top has been posted. First resistance is last Thursday's high crossing at 1789.50. Second resistance is the 75% retracement level of the September-December decline crossing at 1825.20. First support is the reaction low crossing at 1706.40. Second support is the reaction low crossing at 1652.20.

What To Expect in the Final Week Of February for Precious Metals, Gold Stocks & Dollar

Crude Oil Bulls Looking to Follow Through on Tuesday, Gain Back Momentum

Crude oil closed higher on Monday [March contract] renewing the rally off this month's low. The high range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI remain bullish signaling that sideways to higher prices are possible near term. Closes above the reaction high crossing at 101.39 are needed to confirm that a short term low has been posted. If March renews the decline off January's high, December's low crossing at 92.95 is the next downside target. First resistance is the reaction high crossing at 101.39. Second resistance is the reaction high crossing at 102.24. First support is the 10 day moving average crossing at 98.37. Second support is this month's low crossing at 95.44.

Gold closed lower on Monday [April contract] and the mid range close sets the stage for a steady opening on Tuesday. Stochastics and the RSI are bearish hinting that a short term top might be in or is near. Closes below the 20 day moving average crossing at 1714.10 would confirm that a short term top has been posted. If April renews the rally off December's low, the 62% retracement level of the September-December decline crossing at 1772.28 is the next upside target. First resistance is the reaction high crossing at 1765.90. Second resistance is the 62% retracement level of the September-December decline crossing at 1772.80. First support is the 20 day moving average crossing at 1714.10. Second support is the reaction low crossing at 1652.20.

Natural gas closed lower on Monday [March contract] and the mid range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI are bearish signaling that sideways to lower prices are possible near term. If March renews the multi year decline, monthly support crossing at 1.960 is the next downside target. Closes above the reaction high crossing at 2.844 are needed to confirm that a short term low has been posted. First resistance is the reaction high crossing at 2.844. Second resistance is January's high crossing at 3.153. First support is January's low crossing at 2.289. Second support is monthly support crossing at 1.960.

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ONG: Sharp Move Dominates Oil Market, Bears Take the Momentum

Sharp moves dominated yesterday's session, where oil rallied to acquire our targeted area near 103.00 before reversing sharply again to breach the bearish technical pattern shown on image in addition to 100.10 support. Currently, price is testing the breached level again which turns into resistance after testing the main pivotal support at 98.50, but in general, trading remain within the same ranging stance. Today we may see another downside attempt as important technical levels were breached yesterday. The trading range for the day is expected among the major support at 96.00 and the major resistance at 102.00. The short term trend is to the downside with steady daily closing below 105.00, targeting 65.00. Daily Pivot Points     Normal Range     Last Bar Commodity Chart S3 S2 S1 PP R1 R2 R3 H L C Crude Oil 92.93 95.71 97.41 100.19 101.89 104.67 106.37 102.98 98.50 99.10 Natural Gas 2.540 2.602 2.649 2.711 2.758 2.820 2.867 2.772 2.663 2.697 Heating Oil 2.9200 2.9798 3.0169 3.0767 3.1138 3.1736 3.2107 3.1364 3.0395 3.0541 Gasoline RBOB 2.5845 2.6512 2.6912 2.7579 2.7979 2.8646 2.9046 2.8245 2.7178 2.7313 Gold 1616.1 1628.5 1638.1 1650.5 1660.1 1672.5 1682.1 1662.9 1640.9 1647.7 Silver 28.966 29.418 29.771 30.223 30.576 31.028 31.381 30.675 29.870 30.124 Copper 3.4080 3.4650 3.5570 3.6140 3.7060 3.7630 3.8550 3.6710 3.5220 3.6490 Platinum 1468.7 1480.0 1490.0 1501.3 1511.3 1522.6 1532.6 1512.5 1491.2 1500.1       Extreme Range         Posted courtesy of Oil N' Gold

Could Crude Oil Prices Intensify a Pending SP 500 Sell Off?

ONG: Crude Oil Daily Technical Outlook For Wednesday January 11th

Crude oil continues to be bounded in sideway trading from 103.74 and intraday bias remains neutral for the moment. After all, near term outlook will remain bullish as long as 98.30 minor support holds. We'd expect rise form 74.95 to resume sooner or later. Above 103.74 will target 114.83 key resistance next. Though, break of 98.30 will dampen this bullish view and turn bias back to the downside for 92.52 support instead.

In the bigger picture, recent development indicates that pull back from 114.83 was completed at 74.95 already and medium term rally from 33.2 is not finished yet. We'd tentatively treat rise from 74.95 as resuming of such rally. Sustained break of 114.83 will target 61.8% projection of 33.2 to 114.83 from 74.95 at 125.40. On the downside, though, break of 92.52 support will indicate that correction pattern from 114.83 is going to extend further with another falling leg to 74.95 and below before completion.

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Could Crude Oil Prices Intensify a Pending SP 500 Sell Off?

Crude Oil Closed Higher on Tuesday Ending a Three Day Correction

Crude oil closed higher on Tuesday ending a three day correction off last week's high. The mid range close sets the stage for a steady opening on Wednesday. Stochastics and the RSI are overbought but are turning neutral to bearish hinting that a short term top might be in or is near.

Closes below the 20 day moving average crossing at 99.13 would signal that a short term top has been posted. If February extends the rally off December's low, the 75% retracement level of the 2011 decline crossing at 104.84 is the next upside target.

First resistance is last Wednesday's high crossing at 103.74. Second resistance is the 75% retracement level of the 2011 decline crossing at 104.84. First support is the 10 day moving average crossing at 100.23. Second support is the 20 day moving average crossing at 99.17.


Could Crude Oil Prices Intensify a Pending SP 500 Sell Off?

Crude Oil, Gold and Natural Gas Market Commentary For Monday Jan. 9th

Crude oil closed lower due to 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 to lower 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 February extends the rally off December's low, the 75% retracement level of the 2011 decline crossing at 104.84 is the next upside target. Closes below the 20 day moving average crossing at 99.00 would signal that a short term top has been posted. First resistance is last Wednesday's high crossing at 103.74. Second resistance is the 75% retracement level of the 2011 decline crossing at 104.84. First support is the 10 day moving average crossing at 100.96. Second support is the 20 day moving average crossing at 99.00.

Natural gas closed lower on Monday as it consolidates below the 10 day moving average crossing at 3.058. Stochastics and the RSI are turning bullish hinting that a low might be in or is near. Closes above the 20 day moving average crossing at 3.140 are needed to confirm that a short term low has been posted. If February renews last year's decline, monthly support crossing at 2.409 is the next downside target. First resistance is the 10 day moving average crossing at 3.058. Second resistance is the 20 day moving average crossing at 3.140. First support is last Tuesday's low crossing at 2.936. Second support is monthly support crossing at 2.409.

February gold closed lower due to profit taking on Monday as it consolidated some of the rally off December's low. The low range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI remain neutral to bullish signaling that sideways to higher prices are possible near term. Closes above the reaction high crossing at 1643.70 are needed to confirm that a low has been posted. If February renews the decline off November's high, July's low crossing at 1482.60 is the next downside target. First resistance is last Friday's high crossing at 1632.30. Second resistance is the reaction high crossing at 1643.70. First support is December's low crossing at 1523.90. Second support is July's low crossing at 1482.60.

Could Crude Oil Prices Intensify a Pending SP 500 Sell Off?

ONG: Crude Oil Daily Technical Outlook For Thursday Jan. 5th

Crude oil lost some upside momentum after breaching 103.37 resistance but retreat is so far shallow. Intraday bias remains on the upside and sustained break of 103.37 will confirm resumption of whole rise from 75.94 and should target 114.83 key resistance next. Meanwhile, break of 98.30 support is needed to signal topping. Otherwise, we'll stay cautiously bullish in crude oil even in case of deeper retreat.

In the bigger picture, fall from 114.83 has finished at 74.95 already. The structure suggests it's merely a correction or part of a consolidation pattern. Hence, rise from 33.2 is not completed yet. As long as 89.16/17 support holds, we'd favor a break of 114.83 resistance to resume the rally from 33.2. However, break of 89.16/17 will indicate that rebound from 74.95 has completed and whole fall from 114.83 is possibly resuming for another low below 74.95.

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ONG: Crude Oil Daily Technical Outlook For Wednesday Dec. 21st

The strong rebound in crude oil and break of 95.99 minor resistance argues that the correction pattern from 103.37 might be completed with three waves down to 92.52 already. Intraday bias is back on the upside for 102.44/103.37 resistance zone first. Break will confirm resumption of the whole rise from 74.95 and should target a test on 114.83 key resistance. On the downside, though, below 92.52 will invalidate this bullish case and bring further pull back towards 89.16/7 support zone.

In the bigger picture, fall from 114.83 has finished at 74.95 already. The structure suggests it's merely a correction or part of a consolidation pattern. Hence, rise from 33.2 is not finished yet. As long as 89.16/17 support holds, we'd favor a break of 114.83 resistance to resume the rally from 33.2. However, break of 89.16/17 will indicate that rebound from 74.95 has completed and whole fall from 114.83 is possibly resuming for another low below 74.95.

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Crude Oil, Natural Gas and Gold Market Commentary For Monday Evening Dec. 19th

Crude oil closed slightly higher due to short covering on Monday as it bounces off support marked by the 38% retracement level of the October-November rally crossing at 92.68. The high range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI are oversold but remain bearish signaling that sideways to lower prices are possible near term. If January extends this month's decline, the 50% retracement level of the October-November rally crossing at 89.37 is the next downside target. Closes above the 20 day moving average crossing at 98.10 are needed to confirm that a short term low has been posted. First resistance is the 20 day moving average crossing at 98.10. Second resistance is last Tuesday's high crossing at 101.25. First support is the 38% retracement level of the October-November rally crossing at 92.68. Second support is the 50% retracement level of the October-November rally crossing at 89.37.

Gold closed lower on Monday and the low range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible near term. If February extends this month's decline, September's low crossing at 1543.30 is the next downside target. Closes above the 20 day moving average crossing at 1688.70 are needed to confirm that a low has been posted. First resistance is the 10 day moving average crossing at 1695.50. Second resistance is the 20 day moving average crossing at 1688.70. First support is last Thursday's low crossing at 1562.50. Second support is September's low crossing at 1543.30.

Natural gas closed lower on Monday as it extends this year's decline. Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible near term. If January extends this year's decline, monthly support crossing at 2.409 is the next downside target. Closes above the 20 day moving average crossing at 3.425 are needed to confirm that a short term low has been posted. First resistance is the 10 day moving average crossing at 3.271. Second resistance is the 20 day moving average crossing at 3.425. First support is today's low crossing at 3.050. Second support is monthly support crossing at 2.409.

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ONG: Crude Oil Daily Technical Outlook For Tuesday Dec. 13th

Crude oil continues to stay in tight range above 97.36 temporary low and intraday bias remains neutral for the moment. As noted before, more consolidative trading would likely be seen below 103.37 high. Below 97.36 minor support will flip bias to the downside for 94.99 and possibly below. But in such case, downside is expected to be contained by 89.16/17 cluster support (50% retracement of 74.95 to 103.37) and bring rebound. On the upside, break of 103.37 will confirm resumption of recent rally and should target 114.83 resistance next.

In the bigger picture, fall from 114.83 has finished at 74.95 already. The structure suggests it's merely a correction or part of a consolidation pattern. Hence, rise from 33.2 is not finished yet. As long as 89.16/17 support holds, we'd favor a break of 114.83 resistance to resume the rally from 33.2. However, break of 89.16/17 will indicate that rebound from 74.95 has completed and whole fall from 114.83 is possibly resuming for another below 74.95.

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Gold’s 4th Wave Consolidation Nears Completion and Breakout

Gold Bulls Take The Advantage Going Into Thursday

Gold [February contract] closed higher on Wednesday and the high range close sets the stage for a steady to higher opening on Thursday. Stochastics and the RSI remain neutral to bullish signaling that sideways to higher prices are possible near term.

If February extends the rally off November's low, November's high crossing at 1806.60 is the next upside target. Closes below November's low crossing at 1670.50 would renew the decline off November's high.

First resistance is last Friday's high crossing at 1767.10. Second resistance is November's high crossing at 1806.60. First support is November's low crossing at 1670.50. Second support is the reaction low crossing at 1607.30.



Gold’s 4th Wave Consolidation Nears Completion and Breakout

Is this the top for Crude Oil?

Crude oil closed lower on Wednesday as it consolidates some of the rally off the November 25th low. The low range close sets the stage for a steady to lower opening on Thursday. Stochastics and the RSI remain neutral to bullish signaling that sideways to higher prices are possible near term.

If January renews the rally off October's low, the 75% retracement level of the May-October decline crossing at 105.42 is the next upside target. Closes below the reaction low crossing at 94.99 are needed to confirm that a short term top has been posted.

First resistance is the 75% retracement level of the May-October decline crossing at 105.42. Second resistance is the 87% retracement level of the May-October decline crossing at 110.46. First support is the reaction low crossing at 94.99. Second support is the reaction low crossing at 89.05.


Gold’s 4th Wave Consolidation Nears Completion and Breakout

Crude Oil, Gold and Natural Gas Market Commentary For Saturday Dec. 3rd

Crude oil closed higher on Friday as it extends this week's rally. The mid range close sets the stage for a steady to higher opening on Monday. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near term. If January renews the rally off this month's low, the 75% retracement level of the May-October decline crossing at 105.42 is the next upside target. Closes below last Friday's low crossing at 94.99 are needed to confirm that a short term top has been posted. First resistance is the 75% retracement level of the May-October decline crossing at 105.42. Second resistance is the 87% retracement level of the May-October decline crossing at 110.46. First support is last Friday's low crossing at 94.99. Second support is the reaction low crossing at 89.05.

Gold closed higher on Friday as it extended this week's rally. The mid range close sets the stage for a steady opening on Monday. Stochastics and the RSI remain bullish signaling that sideways to higher prices are possible near term. If February extends this week's rally, November's high crossing at 1806.60 is the next upside target. Closes below last week's low crossing at 1670.50 would renew the decline off this month's high. First resistance is today's high crossing at 1767.10. Second resistance is November's high crossing at 1806.60. First support is last week's low crossing at 1670.50. Second support is the reaction low crossing at 1607.30.

Natural gas closed lower on Friday as it extends the trading range of the past two weeks. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near term. Closes above Monday's high crossing at 3.720 are needed to confirm that a short term low has been posted. If January renews this year's decline, monthly support crossing at 3.225 is the next downside target. First resistance is Monday's high crossing at 3.720. Second resistance is the 25% retracement level of the June-November decline crossing at 3.936. First support is last week's low crossing at 3.461. Second support is monthly support crossing at 3.225.

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$100 Resistance Next Target For Crude Oil Bulls

Crude oil closed lower due to profit taking on Wednesday as it consolidated some of the rally off October's low. The mid range close sets the stage for a steady to lower opening on Thursday. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near term. If December extends the rally off this month's low, the 62% retracement level of the May-October decline crossing at 100.08 is the next upside target. Closes below the 20 day moving average crossing at 91.15 are needed to confirm that a short term top has been posted. First resistance is the 62% retracement level of the May-October decline crossing at 100.08. Second resistance is the 75% retracement level of the May-October decline crossing at 105.41. First support is the 20 day moving average crossing at 91.15. Second support is the reaction low crossing at 89.17.

Natural gas was sharply lower on Wednesday as it extends this week's decline below broken trading range support crossing at 3.724. Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible near term. If December extends this year's decline, monthly support crossing at 3.225 is the next downside target. Closes above the reaction high crossing at 3.978 are needed to confirm that a short term low has been posted. First resistance is the reaction high crossing at 3.978. Second resistance is the reaction high crossing at 4.039. First support is today's low crossing at 3.648. Second support is monthly support crossing at 3.225.


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Commodities Gain Strength on the Back of a Weaker U.S. Dollar

Crude oil closed higher on Tuesday extending the rally off October's low. The high range close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI are overbought but are neutral to bullish signaling that sideways to higher prices are possible near term. If December extends the rally off this month's low, the 62% retracement level of the May-October decline crossing at 100.08 is the next upside target. Closes below the 20 day moving average crossing at 90.63 are needed to confirm that a short term top has been posted. First resistance is the 62% retracement level of the May-October decline crossing at 100.08. Second resistance is the 75% retracement level of the May-October decline crossing at 105.41. First support is the 20 day moving average crossing at 90.63. Second support is the reaction low crossing at 89.17.

Natural gas was higher due to short covering on Tuesday as it consolidated some of Monday's decline. Stochastics and the RSI are oversold but remain neutral to bearish signaling that sideways to lower prices are possible near term. If December extends this year's decline, monthly support crossing at 3.225 is the next downside target. Closes above the reaction high crossing at 3.978 are needed to confirm that a short term low has been posted. First resistance is the reaction high crossing at 3.978. Second resistance is the reaction high crossing at 4.039. First support is Monday's low crossing at 3.652. Second support is monthly support crossing at 3.225.

Gold closed higher on Tuesday as it extends the rally off September's low. The high range close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI are overbought but remain neutral to bullish signaling that additional strength is possible near term. If December extends the rally off September's low, the 75% retracement level of the 2008-2011 rally crossing at 1826.50 is the next upside target. Closes below the 20 day moving average crossing at 1704.70 would confirm that a short term top has been posted. First resistance is the 75% retracement level of the 2008-2011 rally crossing at 1826.50. Second resistance is the 87% retracement level of the 2008-2011 rally crossing at 1875.10. First support is the 10 day moving average crossing at 1748.30. Second support is the 20 day moving average crossing at 1704.70.


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