With another trading week over, and Non Farm Payroll having come and gone for another month, markets in general are now looking forward, as the minor reversal in the US dollar’s unstoppable progress appears to have simply been a temporary pause and reaction to the worse than expected employment data.
For longer term oil traders it’s been a question of being patient and waiting, as the commodity continued to consolidate in a narrow trading range, following the extended move lower of early October, which saw the price of oil break through the floor of potential resistance in the $88 per barrel region, before moving down to consolidate in the $79 to $83 per barrel region, where it has remained since.
For equity bulls, the nightmare is over for now. For gold and silver bugs it’s just beginning. If yesterday’s price action was concerning, the overnight news from Japan has opened the trap door for both metals, which has seen them plunge in early trading, as the Bank of Japan sent shock waves through the market announcing an acceleration of its bond buying program.
The short term rally for crude oil, came to a shuddering halt yesterday, as the December WTI futures (USO, quote) contract closed at $92.88 per barrel, having shed over $3 per barrel on the day, closing as a wide spread down candle on the daily chart.
Following continued bullish momentum for many of the major currency pairs, these are now approaching key technical levels, which if breached could prove to be the tipping points for some sustained and longer term trends to develop.
The spot price of gold (GLD, quote) remain basically flat in the pre-market session as it continues to trade near its 2 ½ week high.
This week market participants are getting a flurry of global economic data that has been and continues to have the potential to move the currency markets.
Gold (GLD, quote) continues to remain weak with yesterday’s close of 1284.50. In early trading the spot price of gold is basically flat.
Below are Monday’s trending equities ahead of the opening bell.
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