Bearish Theme in WTI Futures Remains in Play

A bearish theme in WTI futures remains in play and the contract has traded sharply lower this week. The move down has resulted in a break of support at $80.20, the Oct 6 low. The breach highlights a stronger short-term reversal and a continuation lower would pave the way for a move towards $74.26, the 76.4% retracement of the May 4 - Sep 28 bull run. On the upside, initial firm resistance has been defined at $83.60. The latest pullback in Gold appears to be a correction - for now - and the trend condition remains bullish. Moving average studies are in a bull-mode set-up, highlighting a rising trend. A resumption of gains would open $2022.20 next, the May 15 high. Initial firm pivot support lies at $1938.1, the 50-day EMA. Clearance of this level is required to signal a short-term top and the potential for a deeper retracement.

• WTI Crude up $0.66 or +0.87% at $76.41
• Natural Gas up $0 or +0.07% at $3.039
• Gold spot down $4.05 or -0.21% at $1954.86
• Copper down $2.35 or -0.65% at $361.75
• Silver down $0.05 or -0.23% at $22.59
• Platinum down $6.78 or -0.79% at $855.79