Monday, December 20, 2010

An Important Week For Commodities Too

Just as this should be an important week for stocks, it should also be an important week for commodities.

Here is the weekly chart on Gold (GC #F-W). The last 3 major advances were 17, 21 and 20 weeks. Gold is now in week 21 off the last major low. There is a lot of support right below and price extensions above are listed. So far, two price extensions have been met on this rally.

If this is a more important high, then Gold may correct for a few more weeks. We’ll see how it shakes out. If the 20-day gets taken out it will start looking good again. If the 50-day fails, then the correction could get worse.

The daily chart of Gold shows that price is stuck between support and resistance. The 50-day is at 1,369 and the 20-day is at 1,382. Again, this is a very important week for Gold. There are setups in both directions, so expect some chopping around before the trend is established.

Crude Oil (CL G1-D) is in an 11-day trading range, sitting on top of support. Expect a decision soon on Crude Oil and Energy Stocks.

Here is a long-term weekly chart on the Euro (6E #F-W). It is in a downtrend, with support a few points below, but the Euro can get pretty nasty if they want to take it much lower. The Euro has been a good indicator of risk appetite, so I will be watching it closely.

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