World commodity update for 16/02/2009

The 34.20 level was able to limit crude from declining further to rebound to the upside as it was also being oversold on the stochastic indicator. Trading is near the critical 39.10 resistance level which is just above the 38.75 resistance. Despite the fact that we see the trend to the downside, crude needs to correct to the upside but as fa res 39.10 remains intact and the 20 MA at 40.65, the trend is to the downside.

The trading range for today is among the key support at 33.70 and the key resistance at 40.65

The general trend is to the downside as far as 52.00 remains intact with targets at 30.00 and 25.90

Support: 36.85, 35.60, 35.10, 34.85, 34.20
Resistance: 37.80, 38.75, 39.15, 39.70, 40.65

Recommendation: According to our analysis, we believe that its good to sell below 38.75 with targets at 36.15 and stop loss with a four hour close above 39.15

Gold: The yellow metal touched the lows of $932 (21 4-hourly EMA) on Friday and closed higher at $941. The daily chart is over-bought and the hourly chart is moving upward. Currently, gold is holding above $933(21 4-hourly EMA). Breaking of $960 can push gold to $987. Initiate longs around the 21 4-hourly EMA for intraday $10. (Gold: $937.15).