By Mohammed Isah, technical strategist and head of research at FXTechstrategy.com
With a reversal of its intraday gains on Wednesday, Gold is now facing downside pressure and looks to retest its Wednesday low at 1,103.22 ahead of the 1,08820 level, where we expect a cap to turn the commodity back up again. Resistance is seen at the 1,144.88 level and the 1,161.88 level.Crude oil is holding up better than gold, though hesitating below its Wednesday high at 83.00. An eventual break and hold above there will clear the way for a run at its 2010 high at 83.93 with a break resuming its medium-term uptrend toward the 85.00 level. On any pullback, the 80.75 level will be targeted. Silver remains on the defensive following its loss of upside momentum at the 17.62 level on Wednesday. This has seen it following through lower and testing its March 9, 2010 low at 16.85 today. While it maintains above the 16.31 level and its rising long-term channel support at 16.10, higher prices are expected. Wheat continues to remain on the defensive, closing lower on Wednesday and maintaining an offered tone today. This development has left its 2010 low at 466 as the next downside objective, with a break of there triggering the resumption of its medium-term downtrend. Corn is also under pressure, closing lower on the back of its Tuesday weakness on Wednesday. This has left downside risk toward the 459 level, its 2010 low, where a break lower will resume its medium-term downtrend.