It was a big day for commodities with gold and oil stealing the spotlight. Gold soared 2% to close at $1,791.10 an ounce; it's highest level since September 21. Meanwhile crude oil rose over 1% to close at $95.52 a barrel; a level not seen since July.
So are you getting worried that crude oil's more than 25% rally over the last one-month period will keep going until the American consumer is reduced to burning old newspapers in their living room for heat this winter? Relax, we're about $4 from rolling over, at least according Katie Stockton, chief market technician at MKM partners.
Crude Oil Rising: Is $100 a Barrel the Next Stop?
While fully cognizant of crude's break over primary resistance, Stockton sees "secondary resistance in the high $90's to about $100 per barrel," a point at which she thinks we'll see the price of crude begin to roll over. Stockton, who has a long-term bearish position on crude, thinks black gold made a bearish reversal earlier this year; a change of direction that's going to trump any strength over the next couple months.
Naturally, crude oil has an inverse relationship to the dollar. Our technician friend thinks this will continue, despite the ever present tendency for market relationships to temporarily de-link. Stockton uses the Dollar Index has her greenback measure. She sees support for the buck just under $75. As of today, it's about $3.00, or 4%, away from support.
I've saved the fun part for last, just for you gold bugs: She's bullish on the yellow metal, right here, right now.Read More »from Gold Regains Its Chart Mojo