Friday, October 12, 2012

Morning Market Analysis

Oil remains trapped under the resistance of the shorter EMAs.  The underlying technicals are sending mixed messages.  The MACD is about to give a buy signal, but the CMF is negative and the shorter averages are moving lower. 

After breaking through resistance at the 162/164 level, gold is consolidating gains between the 170 and 174 price level.  This action is confirmed by the declining MACD and prices using the EMAs are technical support.

The weekly gold price chart places recent consolidation in perspective.  Prices have rallied to levels established earlier this year.  For the last few weeks, prices have printed spinning tops.  However, notice the bullish CMF and MACD readings, indicating that long-term, GLD is likely to move higher.

The weekly copper chart shows that copper continued to consolidate in a symmetrical triangle pattern. 

Additionally, the industrial metals chart (which includes copper) shows that prices are still depressed.  This is a direct result of the weak manufacturing sector.