GOLD December
When the world and his mother see Gold as a good buy posted in the national tabloids, it really is a goodbye. The failure to reach any higher that 1028 has left this with a problem.
The previous top in March last year reached 1033 and from 681 to claw back to 1028 is a real feat for Gold. Double tops form because sentiment has perhaps shifted away from the particular market and also real longer term investors who bought gold at 700 with 1033/35 in mind are quite happy now to take profits at 1028 just ahead of the exact previous high of 1033 . What is 5 points out of 300?... So you should see longer term investors/hedge funds now taking profits. This is not that they hate Gold now, overnight, just that after a 300 point move to a specific target it is prudent to cover the position than see it drop a 100 points in your face because other hedge funds sold out their longs and you didn't.
Again speculative targets of 1600/1800 on Gold should not be dismissed, its just that now ...at this point.... 1033/35 hasn't broken ..it was a target and investors are reaping their yearly rewards and locking in profits... Short term traders should be aware of the bigger picture and still look to buy dips but very, very carefully.....Below 1004 and the hedge funds will start to dump Gold and you had best not stand in their way.
WTI Oil Oct Contract
Oil broke above 72.90 but only for a moment and failed to hold on. For today support comes in at 71.67/87 which is good enough to hold the downside but a break does signal a move to 71.15/20. If this level gives way then sellers will keep the pressure on for 70.60. This could well be enough on the downside for today and buyers should come to the rescue here. However if this level fails look for 70.05.
There is resistance from 72.84 to 73.16 today and even if we break above this level we run straight in to 73.35/52 which again should be a big hurdle. However if bulls can successfully leap over this resistance level the outlook is much better for them and we could climb to 74.72/85 quite quickly and even challenge 75.00/27 which is an incredibly important level of course.
