Best Financial Markets Analysis Article An impressive rally from a September low point has halted medium term bears in their tracks. And in the process an interesting reversal signal has been seen on the longer term continuation chart. The current pullback could prove temporary…

The Commodity Specialist view

MONTHLY CHART - CONTINUATION:

Note how Sep produced a positive Key Reversal Month, suggesting the bears have had their day.

However, this signal was not apparent on the front month charts so should be treated with a degree of caution.

Note how resistance has so far come from the 23.6% recovery area.

DAILY CHART – DEC-09:

The break through falling resistance was an encouraging sign for bulls.

However, in the Commodity Specialist Guide we had anticipated a deep pullback – which is now occurring.

We are currently assuming this will be temporary.

76.4% support is now under test and we wish to await reaction here before contemplating buy strategies – that said the 4.340 04-Sep low does provide a clear and nearby risk level for buyers.

(Note that a deep pullback on the continuation chart (not yet seen) would imply new front month lows)

Mark Sturdy
Philip Allwright

Seven Days Ahead
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Mark Sturdy, John Lewis & Philip Allwright, write exclusively for Seven Days Ahead a regulated financial advisor selling professional-level technical and macro analysis and high-performing trade recommendations with detailed risk control for banks, hedge funds, and expert private investors around the world. Check out our subscriptions.

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Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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