World market update for 22/06/2009

BULLION

Gold posted an inside day with a slightly lower close on Friday as it comsolidated last week's narrow trading range. The mid-range close sets the stage for a steady opening on Monday. Stochastics and the RSI are oversold but remain neutral to bearish signalling that sideways to lower prices are possible near-term. If it extends this month's decline, the reaction low crossing is the next downside target. Closes above the 20-day moving average crossing would signal that a short-term low has been posted.

Silver closed lower on Friday while extending last week's trading range. The low-range close sets the stage for a steady to lower opening on Monday. Stochastics and the RSI are oversold but remain neutral to bearish signalling that sideways to lower prices are possible near-term. If it renews this month's decline, the reaction low crossing is the next downside target. Closes above the 20-day moving average crossing would temper the near-term bearish outlook in the market.

U.S. STOCK MARKET INDICES

DJI closed lower on Friday as it consolidates below the 20-day moving average crossing. The low-range close sets the stage for a steady to lower opening on Monday. Stochastics and the RSI remain bearish signalling that sideways to lower prices are possible near-term. If the Dow extends last week's decline, the reaction low crossing is the next downside target. SPI closed higher on Friday due to short covering but remains below the 20-day moving average crossing. The mid-range close sets the stage for a steady opening on Monday. Stochastics and the RSI remain bearish signalling that sideways to lower prices are possible near-term. NDI closed higher due to short covering on Friday as it extends last week's trading range. The high-range close sets the stage for a steady to higher opening on Monday. Stochastics and the RSI remain bearish signalling that sideways to lower prices are possible near-term.

ENERGY

Crude Oil posted a key reversal down on Friday and closed below the 10-day moving average crossing signalling that a short-term top has been posted. The low-range close sets the stage for a steady to lower opening on Monday. Stochastics and the RSI are bearish signalling that a short-term top might be in or is near. Closes below the 20-day moving average crossing are needed to confirm that a short-term top has been posted.

Natural Gas closed lower on Friday due to profit taking as it consolidated some of last week's rally. The low-range close sets the stage for a steady to lower opening on Monday. Stochastics and the RSI remain neutral to bullish signalling that sideways to higher prices are possible near-term. If it extends last week's rally, May's high crossing is the next upside target. Closes below the 20-day moving average crossing would confirm that a short-term top has been posted.