22.10.2014 - Technical view on commodity futures

The price of gold reached the level of 1250, but failed to gain a foothold above it and now is near the lower limit of the local rising channel. Given the strong growth of price over the past days, we can see a correction in gold prices to 1230. Despite this, there is a great probability of further growth of the price with the objectives of 1265, 1290 and 1330 after a rebound from the bottom of the channel. We recommend holding long positions with a stop below 1220, and maintain a medium-term negative outlook.

Nearest resistance levels: 1252, 1265, 1278, 1290, 1300

Nearest support levels: 1244, 1230, 1220, 1200, 1180

The price of Light sweet crude oil continues to consolidate near the strong level of 82.50 and moved in a narrow corridor. In case of resumption of the price growth a signal of change of the downtrend will be fixing the price above the level of 85.50. Despite the decrease in reduction potential, we maintain a medium-term negative outlook with the immediate objectives near 80.00 and 77.00. We also recommend to keep short positions and expect increased volatility today.

Nearest resistance levels: 84.00, 85.50, 87.00, 89.00, 90.00, 92.00, 94.20, 95.00, 95.50

Nearest support levels: 80.00, 77.00, 75.00

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