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Afternoon Technicals May 6 - Indices consolidate friday breakouts
00:00, 06 May 2013
North American Indices US30 is holding well above Friday’s 13,900 breakout point, while RSI suggests upward momentum accelerating. 15,000 looms as a key psychological hurdle with next measured upside resistance near 15,400. SPX500 is holding steady near 1,615, although a breakout of Friday’s 1,600 breakout point as new support remains possible. Next measured resistance appears near 1,625 then 1,665. NDAQ100 is holding near Friday’s close, indicating strong underlying support near 2,940 then 2,900. A measured move suggests a test of 3,000-3,010 appears possible in the near term. US SmallCap 2000 is testing its 955 breakout point and old channel high as new support with next support near 930 and a measured move suggesting next major upside resistance could appear in the 1,000-1,010 area. Canada60 (Toronto60) remains in an upswing currently testing 715 with next resistance after that near 724 and support rising toward 700. Commodities Gold continues to consolidate its recent bounce and build a base between $1,445 and $1,485. We still need to see the price clear $1,500 and the RSI clear 50 to confirm the start of a new uptrend. Silver continues to form an ascending triangle base below $24.50 with support moving up toward $24.00. RSI still needs to break out of its downtrend to confirm a positive turn in momentum. Copper has encountered some downtrend resistance near $3.31 followed by $3.45. RSI retaking 50 suggests upward momentum building with support rising toward $3.25. US crude has slumped back toward $95.00 with more support in place near $94.40 after a run at $97.00 failed to overcome major resistance. UK crude ran into resistance near $95.30 but continues to hold above $104.00 which has emerged as key support, keeping its emerging recovery trend intact. Gasoline is back above $2.80 and appears to be gearing up for a rebound. RSI breakout from a downtrend suggests upward momentum building. Next resistance near $2.95 then $3.05 with support in place near $2.70. Natural Gas is breaking down again, falling under $4.00 while RSI dropping under 50 confirms the negative shift in momentum. Next key support tests appear near $3.85 then $3.65. Corn has fallen back under $6.75 , erasing last month’s breakout, and could retest trend support near $6.45. Wheat failed to break through $7.35 but continues to build an ascending triangle below that level with support rising toward $7.00. CMC Markets is an execution only service provider. The material on this site (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.