PRECIOUS METALS

February gold closed higher on Friday as it consolidated some of this week’s decline. The mid-range close sets the stage for a steady opening on Monday. Stochastics and the RSI remain 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 804.60 is the next downside target. Closes above the 10-day moving average crossing at 865.50 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 Wednesday’s low crossing at 836.00. Second support is trading line support crossing near 804.60.

March silver closed higher on Friday due to short covering as it consolidates above the 10-day moving average. The mid-range close sets the stage for a steady opening on Monday. Stochastics and the RSI are neutral to bearish signaling that a short-term top might be in or is near. Closes below the 20-day moving average crossing at 10.908 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 20-day moving average crossing at 10.908. Second support is Monday’s low crossing at 10.570. 

ENERGY MARKET
February crude oil closed lower on Friday as it extended Thursday’s breakout below the 10-day moving average crossing at 42.98. Today’s low-range close sets the stage for a steady opening on Monday. The door is open for additional weakness and a possible test of last week’s low. Closes below last Wednesday’s low crossing at 36.94 would temper the near-term friendly outlook in the market. Stochastics and the RSI have turned bearish signaling that sideways to lower prices are possible near-term. If February renews the rally off December’s low, the reaction high crossing at 52.95 is the next upside target. First resistance is the 20-day moving average crossing at 43.34. Second resistance is Tuesday’s high crossing at 50.47. First support is today’s low crossing at 39.38. Second support is last Wednesday’s low crossing at 36.94.