If you visited the blog over the weekend (How Low is Low?), you know that penetrating major support areas did not bode well for oil and gold. Either though I did not show you the chart on gold, its price was behaving just like the CRB Index andcrude oil. Today, the CRB Index was down 6.66 or (2.08%), crude oil was down $.64 or (.97%), and gold dropped $20 or (3.2%).
With today's price action, these markets are in the most "oversold" since last year. Therefore, expect a strong rally back up to the 50-week EMA as shorts cover to lock-in profits. Overall, I am still expecting oil to sell in the low $50's before this decline is over.
Make sure you visit the course Web page, because I have some exercises for you to do for tomorrow's class.
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