BULLION

Gold closed higher due to short covering on Monday as it consolidated some of the decline off December's high. The low-range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI are bearish signalling that additional weakness is possible near-term. If it extends last week's decline, the 38% retracement level of the 2008-2009-rally crossing is the next downside target. Multiple closes above the 20-day moving average crossing are needed to confirm that a short-term low has been posted.

Silver closed higher due to short covering on Monday as it consolidated some of last week's decline but remains below the 38% retracement level of the 2008-2009-rally crossing. The mid-range close sets the stage for a steady opening on Tuesday. Stochastics and the RSI are oversold but are neutral to bearish signalling that sideways to lower prices are possible near-term. If it extends the decline off January's high, the 50% retracement level of the 2008-2009-rally crossing is the next downside target.

U.S. STOCK MARKET INDICES

DJI posted a new low close for the year on Monday as it extends this year's decline. Stochastics and the RSI are diverging but are turning bearish signalling that additional weakness is possible near-term. If the Dow extends the decline off January's high, the 87% retracement level of the November-January rally crossing is the next downside target. SPI posted a new low close for the year on Monday as it extends the decline off January's high. The low-range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI are diverging but are turning bearish signalling that sideways to lower prices are possible near-term. NDI closed lower on Monday but remains above the 75% retracement level of the November-January rally crossing. Today's low-range close sets the stage for a steady to lower opening on Tuesday.

ENERGY

Crude Oil closed slightly higher due to short covering on Monday as it rebounded off the 87% retracement level of the September-January rally crossing. The mid-range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI have turned bearish again signalling that sideways to lower prices are possible near-term. If it extends the decline off January's high, September's low crossing is the next downside target.

Natural Gas posted a downside reversal on Monday and closed below the 20-day moving average crossing. The low-range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI remain neutral to bullish signalling that sideways to higher prices are possible near-term. If it extends the rally off January's low, the reaction high crossing is the next upside target. Closes below last Thursday's low crossing would temper the near-term friendly outlook.

COFFEE

Coffee closed higher due to short covering on Monday as it consolidated some of the decline off December's high. The mid-range close sets the stage for a steady opening on Tuesday. Stochastics and the RSI are oversold, diverging but are bearish signalling that additional weakness is possible near-term. If it extends the decline off December's high, September's low crossing is the next downside target.

HY Markets
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