Larry Baer’s Technicals: Gold & Silver Resume Uptrend; WTI Oil Could See $100

September 28, 2012

Technical charting reveals fresh buy signals for gold, silver and WTI crude oil.

 

Gold futures (December) indicated a fresh buy signal Thursday (Sept. 27, 2012) on the daily chart. Thursday's buy signal comes after retracement over the past three trading sessions and about two weeks of sideways-to-lower price movement for gold.

The first point of resistance looks to be the 1845 level. The trend is up on the weekly chart and gold issued a buy signal last month on the monthly chart.

Gold Futures Daily Chart

Gold futures daily chart

Silver (December) also showed a fresh buy signal on the daily chart today [Sept. 27, 2012] which similarly comes after approximately two weeks of consolidation. Silver gave a king's cross counter-trend buy signal on the monthly chart. Silver has an upward objective of $44.

The king's cross is my attempt to account for why, shortly after a change in trend, a market often puts in its extreme. What I discovered is that the trend had not actually changed; rather, it was just an event—a news event, short or long covering, etc.—that caused a correction. After this "event," the market would often turn around and resume its previous trend.

 

WTI Crude Oil

November WTI crude oil futures are showing a king's cross counter-trend buy signal on the daily chart. Crude's first objective, in my opinion, looks to be $95.35 and the next objective is over $100. Your stop should go underneath Wednesday's [Sept. 26, 2012] lows. (A stop order to buy—in this instance—becomes a market order when the futures contract trades (or is offered) at or below the stop price. This is a tool traders can utilize to help manage risk.) In my opinion, this appears to be a great trade location.

Crude Oil Futures Daily Chart

Crude Oil Futures Daily Chart

 

Disclaimer: Futures, options and forex trading is speculative in nature and involves substantial risk of loss. These recommendations are a solicitation for entering into derivatives transactions. All known news and events have already been factored into the price of the underlying derivatives discussed. From time to time, persons affiliated with Zaner, or its associated companies, may have positions in recommended and other derivatives.


Contact Larry Baer at [email protected] or (312) 277-0112. To sign up for my free daily charts and setups newsletter: http://www.zaner.com/offers/?page=1&ap=lbaer&rid=hardassets. Visit Larry Baer's Options & Futures Trading Strategies blog at: http://www.larrybaer.com.

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