Gold markets initially rallied during the course of the session on yesterday, as the $1200 level offered a bit of support. However, the market looks as if it can’t build up quite enough momentum to hang onto any gains. Because of this, we are bullishbut feel that momentum is needed to build upfirst.With that we are on the sidelines and simply waiting for some type of impulsive candle higher in order to start buying. We feel that supportive candles below could be used but probably we are going to be sideways for the next session or two.
Silver markets rose during the session on yesterday, breaking above the $16.50 level. However, we could not hang onto most of the gains so it was a little bit of a lackluster showing. We think that there is a significant amount of support down at the $16 level, and most certainly at the $15.50 level. We have no interest in selling the market, because we believe there are too many reasons that the market could bounce at this point. With that we are on the sidelines waiting for supportive candle or an impulsive move above the range of the session on yesterday.
The light sweet crude market bounced a bit during the session on yesterday, as the $48 level below offer continues support. Because of this, we feel that this market will go higher in the short-term, as we continue the larger consolidation area going forward. We believe that the market will probably aim for the $54 level, and perhaps even as high as $55 given enough time. It is a little bit riskier than selling up near the top of the rectangle. However, we recognize that a short-term buying opportunity is in fact presenting itself. We feel much more comfortable in selling, so we would place a larger position to sell the rally once it happens. We do not anticipate this market breaking out above $55, as it is a major resistance.
COMEX Technical Analysis 26th FebPosted: February 26, 2015 in Commodity Tips