Commodities - Energy
Crude Oil Finally Breaks Out
Crude Oil (WTI) $76.90 -$0.04 -0.05%
Crude oil finally managed to break through $75.50 resistance in Tuesday’s session, as stock markets broke through key resistance levels of their own. Traders are now of the buy the dips mentality as the Euro sovereign debt theme has played itself out, at least for now. Tomorrow is Wednesday and with it comes the EIA Petroleum Status Report. The API survey hints at a neutral report (Crude +579K, Gasoline +1344K, Distillate +2143K), thus prices will likely take their cues from broader financial markets. Three notable U.S. economic releases are also out tomorrow: Housing starts (648K expectation), Building Permits (625K expectation), and Industrial Production (+0.9% expectation). The next level of resistance is the $80 level. Former resistance has become support with $75.50 the first level to watch on the downside, followed by $74.00 and $72.50.
Commodities - Metals
Gold Rallies Despite Increasing Risk Appetite
Gold $1233.05 -$1.10 -0.09%
Gold rallied notably despite robust risk appetite evidenced by soaring stock markets and a strong Euro. Prices are clearly not giving up in their attempt to make new all-time highs. A significant break to the upside or downside is still imminent, as the current wedge formation tightens further.
Silver $18.59 +$0.04 +0.22%
Silver climbed above $18.50 on Tuesday as industrial metals and gold both rallied. If prices can clear the $18.71 level, a run toward recent highs near $19.83 is possible. On the downside, $18.00 and $17.50 provide support.
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