Commodities Analysis Video

  Natural Gas had a wild day today, as the bears took the market all the way down to $4.20 before finding strong support there. The bulls also showed massive strength by pushing the market back to finish the day almost unchanged. It now looks like $4.35 may be supportive as we will more than likely grind higher from here.

  Gold continues to suggest strength as we test the upper reaches of the present range again today. The $1,440 mark stopped the market, which of course is part of the overhead resistance represented by the $1,450 area.  It is going to take a break of that $1,450 area to get fresh buying in this market. Going short is almost impossible at this moment, although a pullback at this point isn’t out of the realm of possibility.

  Light Sweet Crude The CL formed a doji today, and appears that it wants to continue its recent sideways move. The $108 is going to be printed before we get another clear bullish signal in this commodity. A break down will find support at the $100 and $95 areas as well. The CL is a completely neutral market at the moment. Brent Brent has been even less interesting over the last week and a half than CL. Until this market reaches $118, there is almost no way to trade it long, and there are several support areas below, including the $112.50 area, and the $107.50 area. It appears that we are waiting for the move to come. However, it should be noted that the market has been staying at elevated levels – normally a hint at underlying bullishness.

  The $4.20 area that was mentioned as potential support yesterday has proven itself, as this market bounced from that level today. In order to get bearish, we would have to break below the 4 handle, and in order to buy more, we want to see $4.50 get passed by. The President of the United States mentioned several times today that he was anticipating expanding the use of Nat Gas in the US, and as such – could be very bullish for the longer-term as well.

  The gold market has shown itself to be stuck between the $1,410 area and the $1,430 area over the last couple of days. This seems to have both the bulls and bears stuck in a box that will be very difficult to get out of, as there is support at $1,410 and $1,400 – while there is massive upside resistance at the $1,450 level. Because of this, the gold market looks very neutral at the moment.