Look at what is happening with crude oil and gold.
Crude Oil
February 29 (King World News) – From Citi’s Naveen Nair: Brent (CO1) traded close to the key 84.75-85.00 (November 30th high, January 2024 high and psychological level) resistance area on Wednesday.
Why it matters: This is a strong resistance level, having been tested in November and January. IF we close higher on a weekly basis, it would suggest a break higher with the next major resistance ~3.5% higher at 87.80-87.99 (November 2023 high, 61.8% Fibo retracement). We also flag this would be a breakout from the ascending triangle pattern we have been in since December.
But momentum suggests we are likely to see a dip: In the near term, we continue to expect the strong 84.75-85.00 level to hold. This is also supported by a crossover in daily slow stochastics from overbought territory. The last two times we have crossed lower (Dec and Jan), we have seen substantial moves lower. The first layer of support is at 80372 (Feb 15 low)…
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Crude Oil & Gold
King World News note: Below is a 10 Year chart of crude oil hedgers positions. Hedgers are very close to the least short they have been on crude oil in the past decade. That could indicate that the price of crude oil may be ready to breakout on the upside. This will usher in even more inflation, and that will be very bullish for gold and silver prices.
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