Sharp Friday Sell-Off Reinforces Bearish WTI Future Conditions

A sharp sell-off on Friday in WTI futures has reinforced current bearish conditions. The move lower has exposed $72.74, Jan 5 low and the next key support. A break of this level would strengthen the current bearish theme and expose $70.56, the Dec 9 low and a bear trigger. Moving average studies are in a bear-mode position and this highlights current market sentiment. Initial firm resistance is seen at $78.56, the 50-day EMA. Trend conditions in Gold are bearish for now, as the yellow metal enters a corrective cycle. This follows a strong sell-off on Thursday and Friday and sights are on the 50-day EMA, at $1853.1. This average represents a key support and if breached, would strengthen a bearish chase and suggest scope for a deeper pullback. On the upside, key resistance and the bull trigger, has been defined at $1959.7, the Feb 2 high.

• WTI Crude down $0.1 or -0.14% at $73.34
• Natural Gas down $0.03 or -1.12% at $2.383
• Gold spot up $8.93 or +0.48% at $1873.96
• Copper down $1.75 or -0.43% at $404
• Silver up $0.11 or +0.49% at $22.464
• Platinum up $1.31 or +0.13% at $977.83