Tuesday's Sell-Off Reinforces Bearish Theme in WTI Futures

Bearish conditions in WTI futures remain intact and Tuesday’s sell-off has reinforced this condition. The contract has cleared $68.80, the Dec 7 low, to confirm a resumption of the downtrend. This maintains the price sequence of lower lows and lower highs and note that moving average studies are in a bear-mode position, highlighting a downtrend. The focus is on $67.28, the Jun 23 low. Key short-term resistance is at $71.96, the Dec 12 high. The latest pullback in Gold is considered corrective and this is allowing an overbought trend condition to unwind. Attention is on $1978.4, the 50-day EMA. It has been pierced. A clear break would signal scope for a deeper retracement. Last week’s early gains reinforce the primary bullish condition. The yellow metal traded to a fresh all-time high of $2135.4 and this signals potential for a climb towards $2177.6 next, a Fibonacci projection.

• WTI Crude down $0.15 or -0.22% at $68.47
• Natural Gas down $0.01 or -0.48% at $2.301
• Gold spot up $2.04 or +0.1% at $1981.73
• Copper down $1.3 or -0.34% at $377.35
• Silver down $0.11 or -0.5% at $22.6612
• Platinum down $2.53 or -0.27% at $929.96