While gold has been the hot commodity of late, recent price action in the commodities is starting to make an extremely compelling case for being long oil. In fact, we would highly recommend looking to establish a long Oil/Gold position over the medium-term. A close look at the daily charts of each respective commodity supports this view. The inter-day gold rally is starting to look overdone with the price now kissing key falling trend-line resistance off of the early 2008 highs ahead of the latest minor pullback, while oil is showing the potential for a major double bottom should neckline resistance at the 50.50 area be taken out.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.
