Wednesday, December 05, 2007


Commodities are at an interesting juncture. Threats of inflation (bullish for gold) are offset by falling economic demand (bearish for oil and industrial metals). Certainly the August-November run-up needs some time to absorb the gains. Given the two forces at play the likely outcome is to see some scrappy sideways action running between November highs/lows. I will be looking at stochastic mid-line support [39,1] as key; a break of this level would likely see a new November price low (and a new low for sideways channel).