World commodity chart update for 13/05/2009

BULLION

Gold closed sharply higher on Tuesday as it consolidated Monday's decline as a weaker dollar and costlier oil spurred demand for the metal as a hedge against further declines in the currency and higher inflation. The high-range close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI are bullish signalling that sideways to higher prices are possible near-term. If it renews November's decline, the reaction low crossing is the next downside target.

Silver closed sharply higher on Tuesday for the first time in three sessions as speculation that the economy may resume growing soon and the dollar’s decline boosted the appeal of the precious metals as hedges against inflation. The high-range close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI are bullish signalling that sideways to higher prices are possible near-term. If it renews October's decline, the reaction low crossing is the next downside target.

U.S. STOCK MARKET INDICES

DJI closed higher on Tuesday dispite a midday loss. The mid-range close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI are overbought but are neutral to bullish signalling that sideways to higher prices are possible near-term. SPI closed lower on Tuesday as U.S. stocks continued to slip, lead by bank stocks and General Motors. The low-range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI are oversold but are neutral to bearish signalling that sideways to lower prices are possible near-term. NDI closed lower on Tuesday as U.S. stocks continued to slip. The low-range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI are oversold but are neutral to bearish signalling that sideways to lower prices are possible near-term.

ENERGY

Crude Oil closed higher on Tuesday as prices surged to a 6-month high as Chinese imports increased. The mid-range close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI are diverging but remain neutral to bullish signalling that sideways to higher prices are possible near-term. Closes below the 20-day moving average crossing are needed to confirm that a short-term top has been posted.

Natural Gas closed higher on Tuesday after prices rose to the highest level in three months on speculation demand for energy will begin to rebound as the recession eases. The high-range close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI are overbought but remain bullish signalling that sideways to higher prices are possible near-term. Closes below the 20-day moving average crossing are needed to confirm that a short-term top has been posted.