Commodities: Crude Oil Backs Off Lower Levels

Bearish tone remains for crude, which is backing off lows. Meanwhile, gold looks vulnerable to the downside. Plus a looks at silver, wheat and corn.
By Mohammed Isah ,

Crude oil may be backing off its recent low at 72.41, but maintains a bearish tone triggered off the 83.93 level in early January 2010. We continue to see risk toward the 70.00 level and then the 68.69 levels, with immediate risk being a correction of its recent weakness.

Gold

remains vulnerable to the downside toward its longer-term rising trend line presently at 1,063.87, with a decline through there targeting the 1,030.85 level. Corrective upside, if seen, will target the 1,104.08 level.

Silver

is also seen backing off lower prices and strengthening in today's trading session. This is corrective of its weakness from the 19.45 to the 15.99 levels. We expect this to fade and turn the commodity lower toward the 16.10 level or even lower, which is in line with its shorter-term downtrend.

Wheat

is maintaining a consolidation tone as it has failed to follow through lower on the back of its Friday weakness. However, it retains its short-term bearishness and is susceptible to the downside.

Wheat's counterpart

corn

is also bearish in the short term, but is currently trading almost flat, suggesting a correction could be shaping up. We reiterate our bearish bias on the commodity, with any recovery seen as corrective.

Mohammed Isah is a technical strategist and head of research at FXTechstrategy.com, a technical-research Web site. He has been trading and analyzing the foreign exchange market for the past seven years. He formerly traded stocks before crossing over to the forex market, where he worked for FXInstructor LLC as a technical analyst and head of research before joining FXTechstrategy.com. He has written extensively on the forex market and technical analysis and his articles have been featured in The Technical Analyst Magazine, The Forex Journal Magazine, The International Business Times and FXstreet.com. At FXTechstrategy.com, he writes daily, weekly and long-term technical commentaries on currencies and commodities, which are offered to its clients. He also produces

The Professional Suite

for his subscribers. He provides full coverage of the forex market with specific focus on G10 currencies as well as the commodities markets, with focus on five key commodities.

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