Commodities Technical And Fundamental Analysis For July 20, 2011

Light Sweet Crude

The CL contract rose on Tuesday, showing the recent consolidation range is still intact. The $100 and $95 levels are currently squeezing price into a shallow area, and when we break that area – we should see a large move in this market. Until then, we like buying dips as the market is bullish overall.


Brent had a slightly quieter day on Tuesday than its cousin. The market seems to want to break out and above the $120 mark as every time it falls, the price just goes back up again. We like buying dips because of this, and are certainly interested in buying on a daily close above $120.


Oil Fundamental Analysis for July 20, 2011

Crude oil pricesrallied on Tuesday, as optimism spread through financial markets on better than expected housing data from the United States, moreover, strong earnings from several U.S. companies boosted demand for higher yielding assets, which pushed crude oil prices to rise.

Traders will be focused on the latest developments in the United States regarding the debt ceiling deal, and the latest developments in Europe regarding the region’s debt crisis. Also, the EIA will release its weekly report for crude oil inventories, which is expected to show that crude oil stockpiles continued to drop.

Wednesday July 20:

The United States Existing Home Sales for June are due at 14:00 GMT , which are expected with 1.9% rebound top 4.90 million from 4.81 million.

At 14:30 GMT, the EIA report for crude oil inventories will be released for the week ending July 8, where in the prior week, crude oil inventories decreased by 0.9 million barrels, and Wednesday’s report is expected to show that crude oil inventories fell by 1.75 million barrels.

Natural Gas Technical Analysis for July 20, 2011

The natural gas markets had a very quiet day on Tuesday, as the markets have taken a break for the second day in a row. This makes sense as the last surge upward had so much power behind it. At these levels, we are simply too far from either major support or resistance to get involved. We are waiting to see the market react at $4.20 or $4.80 to take a position.


Natural Gas Fundamental Analysis for July 20, 2011

Natural gas pricesdropped on Tuesday on expectations of milder weather conditions in the United States next week, noting that natural gas prices have been rising on warmer weather conditions, since it will increase speculations of rising demand for power-plant fuel to meet rising cooling demand.

Milder weather conditions should put negative pressure on natural gas prices on Wednesday, especially since natural gas prices have been rising recently amid the heat wave that spread through the Mideast and East of the United States.

Gold Technical Analysis for July 20,2011

The gold markets fell on Tuesday as the word got out that the Americans may be getting close to a government debt ceiling deal. The truth is that most people knew this was coming, so one has to expect that this fall will lead to a nice buying opportunity. The market remains very bullish, and we are very interested in buying on signs of support. Perhaps a couple of days from now, we will see that sign. The next major support area is $1,550.


Gold Fundamental Analysis for July 20, 2011

Goldfluctuated on Tuesday after it reached yet a new record high as the metal lost some of the upside support on slight easing jitters over the ability of the euro area to resolve the crisis as the euro rose on the eased fears.

The decline after reaching a record for gold was not unanticipated as the metal exhausted the upside momentum following the longest stretch of gains since 1980! The soft dollar and prevailing debt ceiling debate withheld the metal from declining strongly on profit taking after reaching the record.

Rising stocks on good earnings also eased the demand for haven as investor head to other assets to compensate some of the losses.

For Wednesday the outlook for gold remains the same, where the gains are still broad based yet easing jitters will keep the metal subject to profit taking and might decline as investors lock on the gains though the overall bias is still strong and to the upside with the focus still on the Congressional debate in the US over the debt-ceiling and on the Brussels summit on Thursday and that will keep the volatility till then and the upside bias until the sentiment is surely supported by a strong positive influence and eased fears then strong profit taking on gold might be seen.

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