World commodity update for 25/03/2009

Crude Oil closed slightly higher on Tuesday as it extended this month's rally. The high-range close sets the stage for a steady to higher opening on Wednesday. Stochastic and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term. If it extends this month's rally, January'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.

Gold closed lower due to profit taking on Tuesday as it consolidated some of last week's rally but remains above the 20- day moving average crossing. The mid-range close sets the stage for a steady opening on Wednesday. Stochastic and the RSI remain neutral to bullish signaling that sideways to higher prices are possible near-term. If it renews last week's rally, February's high crossing is the next upside target. Closes below last Wednesday's low crossing would renew the decline off February's high.