Gold has broken below a key triple bottom support, according to George Davis, Chief FIC Technical Analyst at RBC Capital Markets
Commodities & Energy
Crude oil is currently testing a significant multiyear retracement at around the $76.28 level, says Chris Williams, Senior Broker at Newedge.
A major bottom is forming in gold and offers a good opportunity to buy at current levels before moving back to record highs, according to Ron William of RW Advisory.
An ominous development is occurring in the DJUBS Commodity Index, according to Walter Zimmermann, Senior Technical Analyst at United-ICAP.
There has been nothing in the recent gasoline futures price action to suggest bottoming action, says Walter Zimmermann, Senior Technical Analyst at United-ICAP, leaving “serious room open to the downside”.
Brent has reached a key target located at 88.49, according to BNP Paribas. A breakout above 90.18 is needed for a short-term bullish reversal, but medium-term they still remain cautious.
Bearish technical developments in many of the key commodity markets emphasise the deflation risks ahead, according to George Davis, Chief FIC Technical Analyst at RBC Capital Markets.
Walter Zimmermann of United-ICAP says that if Brent Crude makes a decisive close below 91, the next target area is 75.80. This, he says, would have nothing to do with crude fundamentals and everything to do with a rising US Dollar.
Gold is approaching crucial support along the bottom of a descending triangle pattern, according to Peter Lee, Chief Technical Strategist at UBS in New York. Violation of this support will open the door to the July 2010 low.
The relationship between USD/JPY and gold is one of the most interesting intermarket stories around, according to George Davis, Chief FIC Technical Analyst at RBC Capital Markets. He points out that this correlation is now at its most negative since 2008.