WTI Sell Off Yesterday Reinforces Strong Bearish Theme

WTI futures remain vulnerable and yesterday’s strong sell-off reinforces the current bearish theme. The contract has tested key support at $70.86, the Dec 9 low. A clear break of this level would highlight an important bearish development and confirm a resumption of the medium-term downtrend. This would open the psychological $70.00 handle and levels below it. Initial firm resistance is at $78.06, the Mar 9 high. Gold remains bullish and the metal is holding on to its recent gains. Resistance at $1858.3, the Mar 6 high has been cleared and the recent rally signals scope for an extension towards $1923.2, a Fibonacci retracement point and a key near-term resistance. On the downside, initial firm support is seen at $1849.2, the 50-day EMA. A break of this level is required to signal a top - this would expose the bear trigger at $1804.9, the Feb 28 low.

• WTI Crude up $0.42 or +0.59% at $71.79
• Natural Gas up $0 or +0.08% at $2.575
• Gold spot down $15.72 or -0.83% at $1888.72
• Copper down $3.95 or -0.99% at $396.15
• Silver down $0.07 or -0.33% at $21.629
• Platinum down $13.9 or -1.41% at $973.68