Free Trial

COMMODITIES: Tuesday's Reversal Lower in WTI Futures Considered Corrective

COMMODITIES

WTI futures traded higher Monday as the pair extended the rally that started Oct 1. Tuesday’s reversal is for now, considered corrective. Recent gains  suggest potential for a continuation higher near-term. Attention is on $77.40, the 76.4% retracement of the Jul 5 - Sep 10 bear leg. This level has been pierced, a clear break of it would strengthen a bullish condition. On the downside, initial firm support to watch is $71.41, the 20-day EMA. The latest short-term retracement in Gold is considered corrective. The trend condition is unchanged and bulls remain in the driver’s seat. Moving average studies are in a bull-mode set-up too, highlighting a clear uptrend and positive market sentiment. A resumption of gains would refocus attention on $2690.2, a Fibonacci projection. Firm support lies at $2615.7, the 20-day EMA. It has been pierced, a clear break would signal scope for a deeper retracement.

  • WTI Crude up $0.34 or +0.46% at $73.98
  • Natural Gas down $0.04 or -1.35% at $2.697
  • Gold spot down $6.38 or -0.24% at $2614.86
  • Copper down $1.05 or -0.24% at $444.6
  • Silver down $0.07 or -0.23% at $30.5835
  • Platinum down $3.67 or -0.38% at $954.19
186 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.

WTI futures traded higher Monday as the pair extended the rally that started Oct 1. Tuesday’s reversal is for now, considered corrective. Recent gains  suggest potential for a continuation higher near-term. Attention is on $77.40, the 76.4% retracement of the Jul 5 - Sep 10 bear leg. This level has been pierced, a clear break of it would strengthen a bullish condition. On the downside, initial firm support to watch is $71.41, the 20-day EMA. The latest short-term retracement in Gold is considered corrective. The trend condition is unchanged and bulls remain in the driver’s seat. Moving average studies are in a bull-mode set-up too, highlighting a clear uptrend and positive market sentiment. A resumption of gains would refocus attention on $2690.2, a Fibonacci projection. Firm support lies at $2615.7, the 20-day EMA. It has been pierced, a clear break would signal scope for a deeper retracement.

  • WTI Crude up $0.34 or +0.46% at $73.98
  • Natural Gas down $0.04 or -1.35% at $2.697
  • Gold spot down $6.38 or -0.24% at $2614.86
  • Copper down $1.05 or -0.24% at $444.6
  • Silver down $0.07 or -0.23% at $30.5835
  • Platinum down $3.67 or -0.38% at $954.19