Global Economic Slow Down: Bearish Tone in Commodites?


My previous post discussed the bearish tone in the equity markets, but there is also a bearish tone in commodities, particularly in oil & gold. It all translates to a slow down in the global economy.

Oil had a topish formation, with big up days on low volume & down days on higher volume.  The move was fierce when it broke through on the down side.  It then formed a bear flag, with a big move downward. It already broke though 72.65 support, with 68.58 in sight, with 66.55 not to far away after. I expect lot more downside at the break of 66.55.

Gold is similar.  It had a tough time reaching new highs & volume was low.  When it finally broke though a trendline (2 trendlines a matter of fact!), it was on extremely high volume.  There was a trendline comeback to the 2nd trendline it broke through, providing another opportunity to short. It is approaching another trendline (apx. 1180ish) & support at 1171.30. At the break of 1171.30, expect lot more downside, as most of the support areas are relatively minor.

Advertisements

About Clair Wyant

I am a foreign exchange & stock/ETF trader in Boston, MA. This blog will be dedicated to my out look in the economy, the financial markets, with an emphasis in foreign exchange. When I am not working, I enjoy watching sports, participating in recreational sports leagues, travel & spend good times with my friends.
This entry was posted in Crude, Energy, Gold. Bookmark the permalink.

2 Responses to Global Economic Slow Down: Bearish Tone in Commodites?

  1. Jim R says:

    oil could trade$66-76 range too. Loss of 200K-500K brl in Gulf and higher costs of insurance, plus OPEC wants $70 floor. Charts secondary to reality.

  2. Great idea, but will this work over the long run?

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s