WTI Reversal Could Mark a Tradable Low


Author Larry Berman

Posted: 25 June 2012 re-posted from etfcm

WTI made a notable reversal Friday, which could mark a tradable low for a few weeks to months. Tensions in the Mid East and the start of hurricane (Debby) season could limit the downside speculation for now after the past few months of liquidation.

Gold remains a huge wild card and the bloggers are getting wilder on their predictions. Many think $1300, while several are still banging the drum on $$$$ still too come. If support at $1525 breaks, that is bad news and means a recognition trade down another $100 or more. We need a breakout above $1630 at this point to get the sector going and more importantly, the declining trendline in the $1700 area. As we noted last week, everything in the middle is trading noise.

The TSX is bound to be very noisy (volatile) as investors begin to doubt China’s economic numbers even more than they did previously. A story in the New York Times suggested officials are manipulating economic data to save face.

 

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