Tuesday, December 25, 2012

Commotion & commodities - 25 December 2012

I have decided to start a new series of analysis for commodities.

/CL WTI Crude Futures


The Crude weekly chart had just given a Buy signal for this week, although it is not completed. Given the chart technicals, it appears that crude is currently consolidating and actually may tip over downwards. The daily chart show a weak "failed" attempt for crude to breakout, and is likely to breakdown. This may be accentuated by a rising USD.

/GC Gold futures

Ref:
26 October post about Gold looking for 200MA
4 November post about Gold breaking 200MA
Previously posted about Gold losing its shine (link above).
The weekly chart now has confirmed Sell signals since 2 weeks ago. Price is currently at a long term uptrend support line. Breakdown in price from 1660 would mean a decent correction in Gold prices. Watch that line...
The daily chart has price consolidating at the daily 200MA. Technicals suggest a small bounce and losing grip of the trendline, only to breakdown as we move into 2013.

Similar to the overall market technicals, it appears that commodities such as crude and gold will follow suit in a decent sized correction. This is probably in line with the fear of the fiscal cliff rather than a flight to safety, and even into inflationary protection.

The MadScientist
25th December 2012

Note: ALL material posted here is from my personal opinion, and my opinion may differ or change without notice. These do NOT constitute as solicitation, investment nor financial advice. By reading the materials presented here, Readers acknowledge the awareness that the materials are intended for educational purposes only. For investment(s) advice, related decisions and/or actions pertaining to investments, always consult your own qualified financial advisors, brokers, etc.

Charts are from TD Ameritrade Thinkorswim platform




No comments:

Post a Comment