GOLD
The
gold markets initially fell during the course of the week but found
enough support at the 1140 level to turn things back around and break
out to the upside. Now that we have cleared the 1180 level, we feel
that this market will more than likely head to the $1200 level.
However, we recognize that we will have to be able to deal with quite
a bit of volatility. We have no interest in selling for the
longer-term until we break down below the 1140 level, which is
something that we haven’t done yet.
FORECAST
The
gold markets rose
during the course of the session on Friday, clearing the 1180 level.
By doing so, it appears that we have broken out and should head to
the $1200 level given enough time, and the pull backs could be buying
opportunities. We believe that the market is trying to form some type
of base here, and as a result we may see much more bullish moves over
the next couple of weeks. The support is at 1140 level.
SILVER
The
silver markets broke higher during the course of the week, above the
$16 level. Because of this, we feel that the market should then head
to higher levels, and pull backs should continue to offer buying
opportunities. We believe that the market have a bit of a floor at
the $15 level, so at this point of time we think that the buyers are
starting to come in and support the silver markets. Expect volatility
as the US dollar continues to strengthen over the longer term.
FORECAST
Silver
markets took
off during the session on Friday, finally breaking out and above the
$16.50 level. With that, the market looks as if it is ready to
continue going higher and that pullbacks will offer buying
opportunities. We think that the silver market has bottomed somewhere
near the $15 level, and as a result we think that longer-term traders
are starting to step in and hold physical silver at this point. We
are bullish with the expectations of a lot of volatility.
CRUDE OIL
The
light sweet crude market fell during the course of the session during
the week, but found enough support at the $42 level to turn things
back around and formed a nice-looking hammer. The hammer is a
reversal sign, so if we break above the top of that hammer we believe
that this market could very well go back to the $50 level next, and
then perhaps the $55 level. We believe that this market is still in
a down trend, so we would be out of a long position right away on
signs of resistance. We believe that if the market breaks above the
$56 level, then things could change rapidly. But until that happens,
we are still very cautious about going long but recognize we may have
a positive week or two ahead.
FORECAST
The
light sweet crude market
rose during the course of the session on Friday, as the $45 level was
overcome. However, there is enough resistance above and we feel that
the short-term move higher is as good as you can anticipate. After
all, there is a lot of noise near the $50 level. With this, we
believe that it’s probably easier to let the market rise in and
start selling if we get the opportunity to sell. However, if you are
a short-term trader, you can get long of this market on a break of
the top of the range.
