Commodities Analysis Video

Light Sweet Crude   The CL contract fell on Friday, plunging to the $85 support level. The area did hold however, but the market was simply reacting to the weak jobs number out of the USA, and not necessarily fundamentals in the marketplace. The fact is that even if there is weak demand coming out of the US, China and India are both buying quite a bit of oil these days. Because of that fact, we like buying this contract on dips like the one we got today. A close above the $90 mark would also get us long. We don’t sell at all. Brent   Brent markets had a very similar day on Friday as it plunged to the $110 area, only to find supportive action. The Brent market seems to be the stronger of the two in general, and we look to see this one lead the other. The resulting candle does look a bit like a hammer, and it is at support....

The natural gas markets fell hard on Friday as the Non-Farm Payroll report showed that no jobs were added in the US for the month of August. The demand therefore should fall as manufacturing will as well. The breaking of the $4 level to the downside was significant, and this chart shows us just how much. We mentioned that if the market fell below the bottom of the Thursday candle we would be sellers. If you have done this, you are doing quite well at the moment. The breaking below $3.80 would also be another signal to start a fresh round of selling. We do not buy this market at all.

With the Non-Farm Payroll report coming out flat on Friday, the gold markets rallied significantly as traders ran for safe haven assets. The gold market is one of the few markets that have been reliable in the recent past, and as such – it is always attractive when people are looking for safety. The $1,900 level above is looming, and it seems we are heading above that mark, and should see new highs soon. Because of this, we like buying dips, and think that the $1,700 - $1,800 level is one big support area at this point. We don’t sell gold – ever.

Light Sweet Crude   The CL contract fell on Friday, after posting a fairly bullish week. The result was a slightly bullish week overall, but not as impressive as it certainly looked it would be in the beginning. The market has a ceiling in the form of the $90 level, and if it can get above it – would be a screaming buy until we hit the $100 mark. The downside is protected by the $80 level, and we feel this is a floor in the CL contract currently. We like buying pullbacks, but for a truly long-term trade – we like a daily close above $90.   Brent   Brent markets had fairly bullish week this past few days, but did suffer a bit on the Friday job figures announced out of the USA. The number was poor, and as a result the question of demand came into play. The truth is that there are plenty of countries willing to buy oil, so this market...

The natural gas markets had a wild week this past 5 days as the market rallied hard, and then fell just as strongly and ended up below the all-important $4 mark for the week. The market is very fragile at this point, and is a screaming sell as the supply simply outweighs demand for natural gas. The fundamentals as well as the technical analysis both point to lower prices. We sell every rally, and would sell new lows as well. Buying isn’t our concern now.

With the Non-Farm Payroll report coming out flat on Friday, the gold markets continued the surge to the upside we have been seeing for quite some time. With economic uncertainty out there, the gold markets become an attractive place for traders to hide money. The highs are in place just above, and it seems that the $1,900 level is going to be taken out again. The market is a screaming buy, and can be bought anytime you get a 3-5% correction at this point. We feel the $1,800 - $1.750 area is now massive support in this market. Pullbacks are going to simply be opportunities to buy gold on sale.

  Light Sweet Crude The CL contract had a very, very quiet day on Thursday, as traders are more than likely waiting for the Friday Non-Farm Payroll announcement. The jobs market is absolutely the key to an economic recovery in the USA. The markets are waiting to see if we can get a boost in employment. Until then, the oil markets will more than likely be quiet. The $90 level just above is a major resistance area, and if we can close above that level, we should go much higher. In fact, we are waiting for that to go long of this market. We see $80 as the current floor for the CL contract. Brent The Brent market had a negative day on Thursday, falling just short of eclipsing the $115 mark. The area proved to be too strong to overcome, but on the day before Non-Farm Employment, quite often the volume will be light at best. We still see $115 as an area...

  The natural gas markets had a back-and-forth day on Thursday as the market approached the all-important $4.10 area. This area will be significant resistance, and needs to be overcome for even the slightest hint of a bullish run. The set up is easy, as the candle formed on Thursday was a doji. Essentially, the doji is traded on a break of either the high or low, and trading with the momentum. We would certainly prefer selling at the breaking of the Thursday low.

  The gold markets were very quiet on Thursday, and basically sat still. The range wasn’t even $10, but many of you may not know that is actually how this market normally functions! The bullish nature of this market cannot be understated, and as such we only buy. We are waiting for pullbacks to get involved. The Non-Farm Payroll announcement will certain affect the market, so taking a position before then isn’t necessarily prudent. We like buying pullbacks, but after 9 a.m. New York time.

  Light Sweet Crude The CL contract had a very quiet day on Wednesday, as it sits just under the $90 mark. The $90 area is considered to be significant resistance. The closing on the daily chart above this area is needed for us to buy again, but we will not sell. The recent higher lows make sure that we cannot be sellers, and will not do so until we close below the $80 mark. In the meantime, we are buying pullbacks and waiting for $90 to give way to get aggressively bullish. Brent The Brent market rose again on Wednesday, and continues to soar above the $112.50 resistance level. The $115 level hasn’t quite giving way yet, but it appears that the level shall. If you are not long this market, waiting for a break above that level would be prudent. If you are already long, you know that this level is the next hurdle. With the recent lows being higher and higher...