World commodity update for 27/02/2009

Crude is currently at critical points which is the 76.4% correction alongside the resistance for a possible contracting triangle which lies at 45.00 - 45.10. Several possible scenarios for the correction which we see is a CT yet the medium term trend is still to the downside and the short term and intraday trends are yet to be determined. Momentum indicators are showing negative signs which supports the possibility for further declines but we need a confirmation from the ADX indicator.

The trading range for today is among the key support at 41.10 and the key resistance at 47.75

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

Support: 44.20, 43.40, 42.85, 42.25, 41.85
Resistance: 45.05, 45.60, 46.20, 46.60, 47.75

Recommendation: According to our analysis, we see that its good to sell the contract below 45.00 with targets at 42.85 and stop loss with a four hour close above 46.60 (only for risk takers)

Gold is moving according to the possible Elliott sequence which we explained in our previous reports and the correctional level at 38.2% Fibonacci of the whole impulsive move started at $801.00 per ounce stopped the last decline and ended by a bullish candle stick formation so that we expect more incline today as far as 917.00 remains intact. Notes: 1-RSI shows an oversold signal. 2-MACD shows a bullish sign.

The trading range for today is among the key support now at 907.00 and key resistance now at 984.00 level.

The general trend is to the upside as far as 900.00 remains intact with targets at 1035.00 and 1060.00

Support: 935.00, 925.00, 916.00, 912.00, 907.00
Resistance: 947.00, 952.00, 956.00, 963.00, 974.00

Recommendation: According to our analysis, we believe that it is good to buy gold with a four hour close above 940.00 with targets at 965.00 and stop loss with a four hour close below 925.00.