Oil inclines steadily inside a minor ascending channel as shown on the secondary image attempting to breach 49.35 but after the positive close above this level the short term negative overview is changed gradually to the upside on the intraday and short term basis and we think that 49.75 will be the base whereas the price will incline towards 52.15 followed by 53.50 and a break of which will confirm the direction towards 60.00 $ a barrel as far as 49.35 remains unbroken.
The trading range for today is among the key support at 44.30 and the key resistance at 55.55.
The general trend is to the upside as far as 49.35 remains intact with targets at 60.00$ a barrel.
Support: 49.75, 49.35, 49.00, 48.50, 47.70
Resistance: 51.00, 52.15, 52.95, 53.50, 54.00
Recommendation: According to our analysis, buy the contract above 49.75 with targets at 51.00 followed by 52.15 and stop loss with a four-hour close below 49.00.
Gold's ability to hold above the psychological $900.00 level has pushed the price higher breaching the 40 days moving average. The move was largely interpreted as a technical follow-through from Thursday but it also had fundamental influences including China's announcement that the country now holds over 1000 metric tons in gold reserves, up from 600 tons reported since 2003 fuelling speculation that other central banks may follow suit. In addition, until the release of the US government's methodology of stress tests for banks the markets are likely to stay nervous which in turn is good news for gold.
The short term trend is sideways while the medium and long term trends are bullish.
Support: $903.75 (Friday's low) Resistance: $929.12 (high of 02/04/09)
Support: $889.45 (yesterday's low) Resistance: $922.77 (high of 04/03/09)
Support: $881.40 (low of 22/04/09) Resistance: $913.90 (Friday's high)
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