Commodities - Energy
Crude Oil Exhibits Relative Strength
Crude Oil (WTI) $71.63 +$0.19 +0.27%
Crude oil prices are close to unchanged after exhibiting relative strength in Monday’s session. While U.S. stocks would end the day broadly lower, oil barely budged. In fact, the S&P 500 stock index closed down 1.35% at $1050, which is below the $1066 flash crash lows, and the lowest closing price since November of 2009. Though oil will almost certainly give in to any significant broad market declines should they occur, Monday’s relative strength bodes well for the next bounce in the commodity. The task is to figure out where that bounce occurs. $69.50 remains the key support level, followed by $65.00 below that. The 50% Fib of the entire correction near $75 is resistance.
Commodities - Metals
Gold Eyes All-Time Highs
Gold $1238.06 -$2.19 -0.18%
Gold is steady after soaring on Monday. The lowest closing levels in stocks since November 2009 and a free falling Euro were the catalysts for the latest move. Prices are now poised to test the all-time highs above $1249. Notably, gold is now holding above the 1000 Euro mark.
Silver $18.13 -$0.04 -0.22%
Silver is currently giving back a bit of the prior session’s steep advance. Prices rallied 4% as the metal played a bit of catch up with gold. It is likely that gold will have to keep rising for silver prices to maintain current levels. There lies significant resistance at $18.50. Support levels are $18.00, followed by Monday’s $17.19 low.
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