COMMODITIES: Further Weakness in WTI Futures Would Threaten Bullish Theme
WTI futures gapped lower yesterday and this resulted in a break of the Oct 9 low. An extension lower would threaten the recent bullish theme and expose support at $66.33, the Oct 1 low, and $64.61, the Sep 10 low and a key support. For bulls, a resumption of gains would instead refocus attention on the key short-term resistance at $78.46, the Oct 8 high. Clearance of this level would resume to the recent uptrend. Gold is trading higher this week and the recent short-term retracement appears to have been a correction. The trend condition is bullish and moving average studies are in a bull-mode set-up too, highlighting a clear uptrend and positive market sentiment. Sights are on $2690.2, a Fibonacci projection. Firm support lies at $2626.7, the 20-day EMA. It has been pierced, a clear break would signal scope for a deeper retracement.
- WTI Crude up $0.08 or +0.11% at $70.61
- Natural Gas down $0.01 or -0.52% at $2.483
- Gold spot up $14.91 or +0.56% at $2677.45
- Copper up $3.3 or +0.76% at $437
- Silver up $0.31 or +0.98% at $31.8048
- Platinum up $8.81 or +0.89% at $997.36