With the weekend activity spurring some fear about new mid-east issues, crude oil continued its bounce back up towards the 80 dollar level. Two factors influencing that move are 1) the unrest in Iran 2) the Christmas Day Detroit Plane Incident in the US, and 3) the feeling that Russia’s comment that it would not take sides in an Iranian/ Israeli conflict, all combined to push these commodity markets higher.
Throw in thin holiday action and you have a recipe for a sharp up move. On the daily charts, March Corn had an impressive pop higher, with its high at 418 1/2, the 420 to 425 area is within reach of an extended rally through the rest of this week.
Jan beans has bounced back half way between its recent trading range with 1070 up above and the 985 level which we tested just 3 sessions ago. 1028-1030 was the half-way back target. Not a coincidence that we traded there today.
March Wheat had a nice pop higher on the day as well. With its move up to the 550 level today, was impressive, there is still plenty of resistance on the charts all the way up to to the 600 level.
In the metals, we had continued rallies off of the recent correction lower. March silver looks like it could test the 17.80 level, after bouncing off its near term low at 16.80. March gold is looking at resistance at the 1120 level and 1,140 level before things get really interesting on the bullish side.
The first of the year will bring fresh buying from the index funds. That will be the test for these commodity markets.
Good Trading
