World commodity update for 12/02/2009

After waiting for 11 days, what we expected occurred as crude is now reaching our downside targets neglecting the fact that it is being oversold on momentum indicators. Trading is still below the 76.4% correction at 36.50 and we see today that there is a chance for further decline movements that could take crude to 34.85 as far as the 76.4% correction remains intact.

The trading range for today is among the key support at 32.25 and the key resistance at 40.60

The general trend is to the downside as far as 52.00 remains intact with targets at 34.85 and 32.25

Support: 35.60, 35.10, 34.85, 34.20, 33.70
Resistance: 36.50, 36.85, 37.45, 37.80, 38.75

Recommendation: We advise to stay aside.

Gold breached the previous explained critical (930.00-935.00) areas in the Asian session ignoring the bearish candle stick and now we can say that the intraday outlook turned into bullish depending on the stability occurred above 907.00 areas and despite the over bought signals appeared on the Stochastic but it might be engulfed by the bullish signs appearing on the MACD traditional; hence, we expect more incline today as far as 912.00-907.00 remains intact. The trading range for today is among the key support now at 900.00 and key resistance now at 1000.00 psychological level. The general trend is to the upside as far as 856.00 remains intact with targets at 1035.00.

Support: 935.00, 925.00, 916.00, 912.00, 907.00
Resistance: 947.00, 960.00, 965.00, 973.00, 1000.00

Recommendation: According to our analysis, we believe that it is good to buy gold with a four hour close above 945.00 with targets at 970.00and stop loss with a four hour close below 930.00.