BULLION

Gold closed lower due to light profit taking on Monday as it consolidated some of last week's rally. The mid-range close sets the stage for a steady opening on Tuesday. Stochastics and the RSI are turning neutral to bullish again signalling that sideways to higher prices are possible near-term. If it resumes the rally off February's low, the reaction high crossing is the next upside target. Closes below the 20-day moving average crossing are needed to confirm that a short-term top has been posted.

Silver closed slightly lower due to light profit taking on Monday. 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 February'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.

U.S. STOCK MARKET INDICES

DJI closed higher on Monday as it consolidated some of last week's decline. The high-range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI are overbought and are turning neutral hinting that a short-term top might be in or is near. SPI closed higher on Monday as it renewed the rally off February's low. The high-range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI are overbought but are turning neutral to bullish signalling that sideways to higher prices are possible near-term. NDI closed higher on Monday and above the previous reaction high thereby renewing the rally off February's low. The high-range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI are overbought but are neutral to bullish signalling that sideways to higher prices are possible near-term.

ENERGY

Crude Oil closed lower due to profit taking on Monday. The low-range close sets the stage for a steady to lower opening on Tuesday. Stochastics and the RSI are overbought and are turning bearish hinting that a short-term top is in or is near. Closes below the 20-day moving average crossing would confirm that a short-term top has been posted. If it resumes the rally off February's low, the 75% retracement level of the January-February decline crossing is the next upside target.

COFFEE

Coffee closed higher due to short covering on Monday as it consolidates above the 75% retracement level of the July-December rally crossing. The high-range close sets the stage for a steady to higher opening on Tuesday. Stochastics and the RSI are neutral to bearish signalling that sideways to lower prices are possible near-term. If it extends last week's decline, the 87% retracement level of the July-December rally crossing is the next downside target.

HY Markets
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