World commodity update on 09/02/2009

Initially crude moved lower touching a $38.59 low but late afternoon reversed course crossing above all moving averages, so it was no surprise to see an 'Outside Day' pattern engulfing the previous day range. Towards the end of the trading day oil retracted again losing 73 cents overall as if stubbornly refusing to make any significant break either way. The technical picture shows a clustering of the moving averages which still point to more sideways movements.

The short term trend is sideways, while the medium and the long term trends are bearish.

WTI:

Support: $38.59 (Friday's low) Resistance: $44.41 (high of 21/01/09)

Support: $37.48 (low of 12/01/09) Resistance: $43.44 (high of 30/01/09)

Support: $36.06 (high of 13/01/09) Resistance: $42.63 (Friday's high)

OIL (BRENT):

Support: $44.21 (Friday's low) Resistance: $49.12 (high of 16/01/09)

Support: $43.55 (low of 27/01/09) Resistance: $48.40 (high of 27/01/09)

Support: $42.85 (low of 21/01/09) Resistance: $47.48 (Friday's high)

Gold closed slightly higher on Friday in an 'Inside Day' pattern where the range was engulfed by the previous day one. After recent gains, market participants decided to take the profits ahead of weekend with the details of the stimulus package still debated. The move in the US dollar didn't provide much of a hint regarding the yellow metal's direction which could be set to take a breather after failing to breach resistance just under $930/oz.

The short term trend is sideways while the medium and long term trends are bullish.

Support: $903.40 (Friday's low) Resistance: $927.07 (high of 02/02/09)

Support: $900.88 (14 day moving average) Resistance: $924.20 (high of 05/02/09)

Support: $881.85 (low of 28/01/09) Resistance: $920.10 (Friday's high)