Crude is trading around $50.80 & as we can see on charts it is trapped in a range & producing a symmetrical triangle pattern. Generally these patterns appear before a big move & provide a either side breakout in 50-75% length range. Candlestick pattern are neutral with RSI. Decreasing volume from last few weeks hint for the same.
COMEX Gold and WTIC Crude Weekly charts are shown here with ATR volatility trading system applied on top of it and William VIX indicator to guage the weekly volatility. It is observed that Gold last week entered into the long term sell mode with current weekly resistance zone coming near 1260 zone.
Government spending policies that influence macroeconomic conditions. Through fiscal policy, regulators attempt to improve unemployment rates, control inflation, stabilize business cycles and influence interest rates in an effort to control the economy. Fiscal policy is largely based on the ideas of British economist John Maynard Keynes (1883–1946), who believed governments could change economic performance by adjusting tax rates and government spending.
If you are a regular reader of my articles, then you know “I hate technical indicators”. They are a derivative of price action, nothing more than a mathematical complex paralysis. My clients frequently question me-“Hey do you use any indicator”? Most probably my reply will be no-because majority of you guys know, I am a pure Price action trader!
Fundamental remains very weak for silver from last few months, gold with bad performance in 2014 kept pressure on silver as well as slowdown in leading manufacturing economy china slashes silver demand as industrial metal. With a positive start of 2015 from gold & a major expectation of QE from china , japan & europe together could provide a supportive ambiance for this metal.
On monday international crude breaks more than 5% and settled around $50 level which is the lowest settlement since April 2009. Crude tumbled heavily after data showed Russian oil output at post-Soviet era highs averaging 10.58 million barrels per day and Iraq plans to expand crude exports to 3.3 million barrels a day this month.
Natural gas (10.12.2014) respected our last article & fall to the mention target area. As always traders becoming more bearish due to last week fall in natural gas & we feel its time to have a sharp look at future prospect.
Gold (01.12.2014) reverse from $1207 mark which we mention as first resistance for bulls. However fall from mention level should taken as correction or profit booking but swiss gold referendum added more fuel & created panic selling.
Out with the old: Super Commodities such as Gold, Silver,Oil etc are in a so-called secular bear market that may stretch for years.Remember the commodities supercycle, that seemingly endless 2000s commodities boom? It drove oil, gold, copper and other commodities to record levels may be moving out of order
Now gold is trading around $1184 & we can see on charts, friday gold rally more than 3% & provided a closing above $1182-1172 resistance which where able to stop gold momentum many times. Technically after breaking $1180 mark gold made a low of $1131 while unable to close below $1138 mark which represent the 161.8% Fibonacci retracement level.
Gold rose sharply in last few session & reach to the battle field area $1172-1182 once again. A break above $1182 will needed to gain momentum while a reversal could lead for more profit booking.
CNX Small cap index maitains the long term sell mode since Jul2014 and currently on the verge of breakout any close above 5291 on daily basis could change the trend to long term buy mode.