COMMODITIES: Trend Direction in WTI Futures Bearish Despite This Week's Recovery

WTI futures have traded higher this week. For now, short-term gains are considered corrective and the trend direction remains bearish. However, resistance at $78.37, the 50-day EMA, has been pierced. A clear break of this average would expose the key short-term resistance at $80.62, the May 1 high, where a break is required to cancel a bear theme. On the downside, a resumption of weakness would open $71.33, the Feb 5 low. Gold is trading closer to its recent lows. A sharp sell-off on Jun 7 reinforces a short-term bearish theme. The yellow metal has traded below the 50-day EMA, at 2314.1. The break confirms a resumption of the reversal that started May 20 and signals scope for a deeper correction. This has opened $2277.4, the May 3 low. Clearance of this price point would strengthen a bearish theme. Initial firm resistance to watch is $2387.8, the Jun 7 high.

• WTI Crude down $0.41 or -0.52% at $78.1
• Natural Gas up $0.04 or +1.15% at $3.079
• Gold spot down $9.38 or -0.4% at $2315.62
• Copper down $3.4 or -0.75% at $452.5
• Silver down $0.39 or -1.3% at $29.3376
• Platinum down $11.28 or -1.17% at $950.32