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Commodity Markets Fail At Support

Bullion
Sentiment towards bullion trade remains mixed. Momentum favors the short side of trade, but caution is required in expecting a collapse in GLD and SLV values.

There were major buyers in at 1490 on gold, and 38.50 recently, which are major potential swing point areas. The news wires are covering the increase in margin requirements as a reason for recent declines.

Gold is consolidating just above the 20-day SMA at 1500. The Apr 29 11 Silver signal sent to clients, short from 47.50, has hit its two main targets and is now consolidating just above the 50-day SMA area at 38.70.

TheLFB client note updates for moves lower have completed the first leg. No signals are forming in the near-term. Clients will be notified the moment that price action breaks.

Crude WTI
Sentiment towards WTI trade remains mixed. Momentum favors the short side of trade, but caution is required in expecting a collapse in WTI values.

There were major buyers in at 107.00 recently, which is a potential swing point area. The news wires are looking at potential Middle Eastern civil unrest as reasons for oil prices to move. US oil inventories were better than expected recently, printing at 3.4m a barrel which has pressured oil values.

WTI is consolidating just below the 20-day SMA at 111.00. The May 03 11 112.40 WTI signal sent to clients, short from 112.40, has hit its two main targets and is now holding just above the 50-day SMA area at 38.70.

TheLFB client note updates for moves lower have completed the first leg. No signals are forming in the near-term. Clients will be notified the moment that price action breaks.