Best Financial Markets Analysis Article Price swings over the last few months have kept the charts in consolidation mode, below a long term key Fibo resistance level. Recent losses have temporarily tilted the scales more in favour of the bears, but losses should prove temporary in the grander scheme of things.

The Commodity Specialist view

WEEKLY CHART – CONTINUATION:

The 38.2% recovery level has proved a tough barrier to push through, and remains first key resistance on this long term chart.

The multi-month consolidation is now seeing more of a sagging in price but this should ultimately be temporary ahead of a later (postponed for now) break above that 38.2%.

DAILY CHART – DEC-09:

This week’s break below rising support around 13.00 confirms that s/term bears are in control.

We think that s/term rallies will prove temporary/corrective ahead of further weakness.

Resistance-wise first note the prior Oct lows around 14.00 and 61.8% bounce level at 14.06.
Then the 76.4% level at 14.43 and falling resistance line just above.

The 12.00 area is something of a minimum target (note the small bear channel base just below here). But also keep in mind an interesting Fibo projection at 11.60, currently coinciding with a larger bear channel base – better support could be seen here.

Ahead of the targets being neared, the ideal sell area looks to be around 14.00, if seen, with stops above the 14.43 76.4% level and falling resistance, say 14.60. 12.50 would be targeted for partial profits, stops reducing to cost. Traders choice whether to target 12.00 or towards 11.60 for more.

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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