Friday, July 8, 2011

Oil and Gold Update

Oil is selling off in accord with all risky assets this morning. If jobs are weak, oil and gasoline consumption would be weak. Oil has a simple and direct correlation to economy. Trailing stops are being gobbled up here. Longs are bailing. 50 dsma is resistance. Support comes in right here @ 200 dsma and below @ 95.70 38.2% fib.

Gold is rocking. With dollar down across the board gold is now gaining momentum. Italian worries are a big help as well. Precious is the desired asset here with all of its positive underpinnings coming together. Two consecutive closes above 50 dsma occurred (as I discussed before), shorts are bailing. 1559 resistance and high @ 1577 after that. 50 dsma is support.

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