Last Updated on 19 December 2012
GOLD: Under Bear Pressure, Sets Up For More Downside.
GOLD: Although GOLD continues to hold on to its broader medium term uptrend, further downside pressure could be building up. This is coming on the back of a reversal of its previous week gains at the end of the week. Support lies at 1,672 level where a break will target the 1,640.45 level. A cut through here will allow for more declines towards the 1,600.00 level. A respite is likely to occur here and turn the commodity higher. Conversely, resistance resides at the 1,753 level where a violation will call for a run at the 1,774 level. A cut through here will call for a run at the 1,795 level and then the 1,827.85 level. All in all, GOLD is biased to the upside medium term though facing a corrective pullback.
CRUDE OIL: Rallies, Breaks Through Trendline Resistance
CRUDE OIL: Crude Oil has triggered a strong corrective recovery by breaking through its trendline resistance. This development has also pushed the commodity above the 89.19 level suggesting further strength towards the 90.00 level could be building up. A violation will aim at the 91.25 level. Further out, resistance resides at the 92.00 level and then the 93.63 level. Its daily RSI is bullish and pointing higher supporting this view. On the downside, support lies at the 89.19 level where a reversal of roles is likely to occur and turn it higher. However, if this fails, further declines could develop towards the 86.93 level where a breach should see Crude Oil decline further towards the 84.04 level. Further down, support comes in at the 83.50 level. We may see a halt in declines here but if broken further downside will aim at the 82.08 level. All in all, Crude Oil continues to face upside recovery risks.
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