Key point on oil

WTI Oil has been rising steadily and on the daily chart we can see that it has made a high around the 51.60 level from where it bounces to the downside. Today the price of oil reaches the 50.00 level, which could act as support due to the fact that it has acted as resistance in the past. The bullish trend is still in place, especially when the 55 day EMA, purple line is pointing up and it is separating from the 200 day EMA, blue line. The 51.60 could still act as resistance if the price keeps rising, but if oil breaks below the 50.00 level, then it may try to reach the 48.00 level. The 55 day EMA may also act as support if the price drops to that zone.

Explosive rally on oil

WTI oil has broken once again above the 50.00 level, but with a lot more strength, after Russia said that it agrees with OPEC’s plan to freeze oil production. The news has caused oil to rally to the 51.60 zone as shown on the daily chart. The price of oil may try to stall at the 51.60 zone, but the bullish momentum is still in place. Above the 51.60 level, it next resistance could be the 53.00 level. To the downside, in case the price retraces, the 50.00 level could act as its first support, but it may try to break it to reach the 48.00 level, which could act as a better support. The commodity is over-extended to the upside and that is why it is vulnerable to a bearish correction.

Gold: Breakout-pullback pattern

The breakout and pullback pattern is when the price of an asset breaks a support or resistance and pulls back to it, but then it continues in the direction of the original breakout. The pattern gives the opportunity for new traders to come into the market. On the daily chart of gold we can see that the price has broken below the 200 day EMA, blue line, and now it is pulling back to the 200 EMA. If the price reaches the 200 EMA, then it may bounce to the downside and even try to break below the 1250 level. Below the 1250 level, its next support could be the 1200 level. If for any reason the price breaks above the 200 EMA, then the 1300 level could act as its next resistance.

Gold still bearish

Gold continues dropping and it has reached the 1250 level as shown on the daily chart, where it may try to bounce to the upside. If the price bounces to the upside and reaches the 200 day exponential moving average, then a breakout and pullback may be completed and a short entry may be possible. If the price breaks above the 200 day EMA, then the 1300 level may still act as a resistance. On the other hand, if the Dollar continues rising, especially if the NFP numbers come out better than expected, then the precious metal may continue dropping and break below the 1250 level. The next support level below the 1250 level is the 1200 level.

Corn stalls its rally

Corn on the daily chart has kept a good rally and it is showing a trend change, but after it broke above the 340.00 level and the 55 day exponential moving average it stalls at the 346.00 zone during the last few days. The bullish trend is still in place and the price of corn may try to continue going higher. If it continues going higher, then the 200 day exponential moving average around the 358.57 level could act as its first resistance. Above the 200 day EMA, its next resistance is at the 383.88 level. To the downside, the first support is the 340.00 level, but below that level, the 325.00 level could also act as support. The low at the 312.17 level is its most relevant support so far on the daily chart.

The rally of the USD/JPY

The USD/JPY rallies for today from the 102 zone to the 103 level. Currently, the 103.00 level is acting as resistance and the price may try to bounce to the downside. But if risk appetite keeps rising in the markets, then the pair may break above the 103.00 level and try to visit the 104.00 zone, which has acted as resistance in the past. If the pair bounces to the downside, then the 102.00 level along with the 55 day EMA, purple line, could act as support and the price would stay inside the descending triangle pattern, where the 100.00 zone is the most important support.

Gold drops

On the daily chart of gold we can see that today it suffered one of its most profound drop in recent time. Gold actually dropped 3% after the better than expected fundamentals from the US made the Dollar rally along with risk appetite in the markets. Since gold and the Dollar have a negative correlation, when the Dollar rises, gold drops. On the chart we can also see that the price has dropped to the 200 day EMA around the 1269 level, which coincides with the 200 week EMA, no wonder it stalls there momentarily. From this point the price may bounce to the upside, but the 1300 level could act as resistance.