World commodity update for 18/02/2009

Crude moved sharply lower yesterday touching new recent lows at $37.99 level. It was a significant move almost entirely downwards from the opening which saw oil losing nearly 3.5 dollars or 8% for the day. As we mentioned in the previous report ‘slowly but surely' the moving averages are beginning to point south with the crude price well below them. So after a period of sideways movement the chart indicates a bearish picture yet again.

The short, medium and long term trends are bearish.

WTI:

Support: $37.99 (yesterday's low) Resistance: $42.67 (high of 16/02/09)

Support: $33.22 (low of 15/01/09) Resistance: $42.31 (9 day moving average)

Support: $30.00 (psychological level) Resistance: $41.44 (yesterday's high)

OIL (BRENT):

Support: $40.23 (yesterday's low) Resistance: $46.50 (high of 13/02/09)

Support: $38.58 (low of 30/12/08) Resistance: $45.50 (high of 16/02/09)

Support: $36.20 (low of 24/12/08) Resistance: $44.00 (yesterday's high)

Gold

As safe haven buying continued yesterday gold rallied sharply touching its highest point since July 2008 at $974.22/oz level. The move was significant in a range of nearly $35 and was triggered by financial markets uncertainty as investors fled equities for the yellow metal. So the big sell off in equities probably came as a reminder that in troubled times gold can be used as a hedge against weakness in other assets and with stocks expected to retest their November 2008 lows in the coming weeks the precious metal is in a very favorable position.

The short, medium and long term trends are all bullish.

Support: $939.70 (yesterday's low) Resistance: $1000.00 (psychological level)

Support: $935.51 (9 day moving average) Resistance: $981.45 (high of 16/07/08)

Support: $931.90 (low of 13/02/09) Resistance: $974.22 (yesterday's high)