February gold closed lower on Wednesday as it extended this week’s decline and closed below the 20-day moving average crossing at 847.60 confirming that a short-term top has been posted. The low-range close sets the stage for a steady to lower opening on Thursday. Stochastics and the RSI are bearish signaling that sideways to lower prices are possible near-term. If February extends this week’s decline, trendline support drawn off the November-December lows crossing near 801.50 is the next downside target. Closes above the 10-day moving average crossing at 862.90 would signal that a low has been posted. First resistance is last Monday’s high crossing at 892.00. Second resistance is October’s high crossing at 938.80. First support is today’s low crossing at 836.00. Second support is trading line support crossing near 801.50.

March silver closed lower on Wednesday due to profit taking as it consolidates above the 10-day moving average. The low-range close sets the stage for a steady to lower opening on Thursday. Stochastics and the RSI are turning neutral to bearish signaling that a short-term top might be in or is near. Closes below the 20-day moving average crossing at 10.787 are needed to confirm that a short-term top has been posted. If March extends the rally off October’s low, the reaction high crossing at 12.230 is the next upside target. First resistance is Monday’s high crossing at 11.770. Second resistance is the reaction high crossing at
12.230. First support is the 10-day moving average crossing at 10.946. Second support is the 20-day moving average crossing at 10.787. 

ENERGY MARKETS 

February crude oil closed sharply lower on Wednesday due to profit taking as it consolidated some of the rally off December’s low. Today’s low-range close sets the stage for a steady to lower opening on Thursday. Stochastics and the RSI remain neutral to bullish signaling that sideways to higher prices are possible near-term. If February extends this month’s rally, the reaction high crossing at 52.95 is the next upside target. Closes above the reaction high crossing at 52.95 are needed to confirm that a short-term low has been posted. Closes below last Wednesday’s low crossing at 36.94 would temper the near-term friendly
outlook in the market. First resistance is Tuesday’s high crossing at 50.47. Second resistance is the reaction high crossing at 52.95. First support is today’s low crossing at 43.26. Second support is the 10-day moving average crossing at 42.28.