Vector Commodities

Gold - Strategy: Buy on Dips

The gold markets as you can see initially fell during the course of the session on Monday, but found enough support at the $1180 level to turn things back around and form a hammer. With that being the case, the market looks as if it’s ready to head towards the $1200 handle. That area starts quite a bit of resistance though, extending all the way to at least the $1220 level. If we break down below the $1180 level, we feel that the market should then head back and try to fill the gap that formed several sessions ago.

Silver - Strategy: Buy on Dips

Silver markets went back and forth during the session on Monday, as we continue to try to break above the $17 level. We believe that a move above the $17 level since this market looking for the $17.50 level, and at this point in time pullback should offer buying opportunities as well, as there should be plenty of support after the bullish move that we saw on Friday. We believe that the markets will continue to try to break out, but it might be quite volatile between now and that final move. We believe that the $15 level below is the absolute bottom of the market.

Crude Oil - Strategy: Sell on Strength

The crude markets initially fell during the course of the session on Monday, but found enough support just above the $45 level to turn things back around and form a hammer. This hammer of course suggests that we are going to go higher, perhaps breaking all the way to the $50 level over the course of the next several sessions. However, before we start buying, we are going to have to wait until we get the market moving above the $48 handle. While the $50 level looks like a decent target, getting above there might be a bit more of a challenge given enough time. We believe that selling a resistant candle once we reach that area is in fact going to be an excellent trading opportunity as well. We expect plenty of volatility, with more of a downward bias over the longer term.