January 27, 2025 19:56 GMT
COMMODITIES: WTI Slumps, Precious Metals Decline Amid Equity Market Sell-Off
COMMODITIES
- WTI has slumped today, as energy markets trade lower in conjunction with the decline in equity markets, following DeepSeek’s Chinese rollout that has undermined US tech stocks.
- WTI Mar 25 is down by 2.1% at $73.1/bbl.
- The trend structure in WTI futures is still bullish despite the recent pullback. The move down appears corrective and is allowing an overbought trend reading to unwind.
- Having pierced the 20-day EMA, next support is at the 50-day EMA, at $72.15.
- A reversal higher would highlight the end of the correction and refocus attention on $79.48, the Apr 12 ‘24 high and a key resistance.
- Meanwhile, Henry Hub is trading down today as indications for warmer weather spark a sell off.
- US Natgas Feb 25 is down by 9.0% at $3.67/mmbtu.
- Elsewhere, spot gold has fallen by 1.2% to $2,738/oz, as precious metals have been caught up in the sell-off in equity markets.
- A bull cycle for gold remains in play, with sights still on $2,790.1, the Oct 31 all-time high. On the downside, the first key support to watch is $2,671.4, the 50-day EMA.
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