Oil Double Bottom Confirmed!
Oil has now officially confirmed the double bottom I have been eyeing up for the last month. Now that we are above the 34.82 level, we have seen a very quick move to the other side of the range to 38.39 which has held as resistance initially. However now that the Falling Wedge pattern as also broken and now held on the daily, traders should be wary of a move through the $39-$40 region which could send weak shorts scrambling for the exits.
Gold Daily Consolidation Breaks and Holds
The Gold market has also so far shown the whites of it's bullish eyes as it has held key support for bulls at $1200 and broken a key triangle formation to the upside which held nicely yesterday. If we can maintain a bid above the 1241 level, the bulls should maintain control in the short term with a view to trade the 1307 medium term level.
Copper Pulls Back on Thin Air But Holds Key Support
Copper has had a very rapid run up in price since it broke it's key inverse Head and Shoulders pattern.After a rapid pullback as there was a lot of air in the market before passive buyers entered, the market has held the 2.2150 to 2.2035 area, which was a very strong support back in August 2015. If we can remain above this area, the market should maintain its bid, with a target on the H&S at 2.3470. There is currently an inside day formation which could yield some volume and flow on the break on either side, with upside break more likely for continuation in my view.
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