World commodity update for 31/03/2009

Crude Oil closed sharply lower on Monday and below the 20-day moving average crossing confirming that a short- term top has been posted. The low-range close sets the stage for a steady to lower opening on Tuesday. Stochastic and the RSI are turning bearish signaling that sideways to lower prices are possible near-term. If it extends today's decline, the reaction low crossing is the next downside target. Closes above the 10-day moving average crossing would temper the near-term bearish outlook.

Gold recently had broken the bullish trend line near $930 . Cluster resistance is around 925-30 which should be taken as opportunities to short again. The bias would change only on closing above 940 dollars on a consistent basis. BEARISH (Gold: $917.60).