BULLION

Gold closed higher on Tuesday and in doing so renewed the rally off February's low. The high-range close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI are turning bullish signalling that sideways to higher prices are possible near-term. If it extends the rally off February's low, January's 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 higher on Tuesday and tested the 50% retracement level of the December-February decline crossing. The high-range close sets the stage for a steady to higher opening on Wednesday. Stochastics and the RSI are becoming overbought but remain bullish signalling that sideways to higher prices are possible near-term. If it extends the rally off February's low, the 62% retracement level of the aforementioned decline crossing is the next upside target. Closes below last Thursday's low crossing would confirm that a short-term top has been posted.

U.S. STOCK MARKET INDICES

DJI closed lower on Tuesday and the low-range close sets the stage for a steady to lower opening on Wednesday. Stochastics and the RSI are overbought, diverging but are turning neutral to bullish hinting that additional gains are still possible. SPI closed higher on Tuesday and tested the 75% retracement level of the January-February decline crossing as it extended the rally off February's low. The mid-range close sets the stage for a steady opening on Wednesday. Stochastics and the RSI are overbought, diverging but are neutral to bullish signalling that sideways to higher prices are possible near-term. NDI closed higher on Tuesday and tested the 75% retracement level of the January-February decline crossing as it extends the rally off February's low. Profit taking tempered early gains and the mid-range close sets the stage for a steady opening on Wednesday. Stochastics and the RSI are overbought, diverging but remain neutral to bullish signalling that sideways to higher prices are possible near-term.

ENERGY

Crude Oil closed higher on Tuesday as it extends the trading range of the past two weeks. The mid-range close sets the stage for a steady opening on Wednesday. Stochastics and the RSI are overbought and are turning neutral to 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.

COFFEE

Coffee closed higher due to short covering on Tuesday 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 Wednesday. Stochastics and the RSI are diverging and are turning bullish signalling that a low might be in or is near. Closes above the 20-day moving average crossing are needed to confirm that a short-term low has been posted.

HY Markets
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