World market update for 29/07/2009

BULLION

Gold closed sharply lower due to profit taking on Tuesday and below the 10-day moving average crossing signalling that a short-term top has likely been posted. The low-range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI are overbought and are turning bearish hinting that a short-term top might be in or is near. Closes below the 20-day moving average crossing would confirm that a short-term top has been posted. If it extends this month's rally, the reaction high crossing is the next upside target.

Silver closed lower due to profit taking on Tuesday as it consolidated some of this month's rally. The low-range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI are overbought and are turning neutral hinting that a short-term top might be in or is near. However, it will take closes below the 20-day moving average crossing to would temper the near-term friendly outlook in the market. If it extends this month's rally, the reaction high crossing is the next upside target.

U.S. STOCK MARKET INDICES

DJI closed lower due to profit taking on Tuesday as it consolidated some of its recent gains. The high-range close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI are overbought but remain neutral to bullish signalling that sideways to higher prices are possible near-term. SPI closed lower due to light profit taking on Tuesday as it consolidates some of this month's rally. The mid-range close sets the stage for a steady opening on Wednesday. Stochastics and the RSI are overbought but remain neutral to bullish signalling that sideways to higher prices are possible near-term. NDI closed higher on Tuesday as it extends this month's rally. The high-range close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI are overbought but remain neutral to bullish signalling that sideways to higher prices are possible near-term.

ENERGY

Crude Oil closed lower due to profit taking on Tuesday. The low-range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI are overbought but remain neutral to bullish signalling that sideways to higher prices are possible near-term. If it extends this month's rally, the reaction 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.

Natural Gas closed lower on Tuesday as it extended Monday's decline. The low-range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI have turned bearish hinting that a short-term top might be in or is near. Multiple closes below the 20-day moving average crossing would temper the near-term friendly outlook. If it extends the rally off this month's low, the reaction high crossing is the next upside target.