Uncertainty Equals Opportunity
City Index February 1, 2012 8:23 PM
<p>With the recent turmoil in Egypt, the price of crude oil has shot upwards of 9.08% in just two days. Meanwhile gold continued lower into […]</p>
With the recent turmoil in Egypt, the price of crude oil has shot upwards of 9.08% in just two days. Meanwhile gold continued lower into support targets of $1329, with the possibility of seeing $1297 in the short term.
The FTSE 100 Index also trailed lower amidst increasing uncertainty. And although the index is back below the 6000 level, some argue that the current pullback may be just a minor correction.
However the technicals are still showing signs of increased weakness. Now that we have seen a break below 5900, the odds are that lower prices cannot be ruled out with the 5737 to 5641 level looking likely. This is based on the bears being able to keep the index below near-term resistance of 5957 to 5988 over the next few days.
Meanwhile the bearish factor of higher oil prices could also mean that crude oil could reach higher toward $104 per barrel in the near future. Along the way, hurdles of $95.69 and $98.57 need to be cleared. As long as the key pivot of $85.11 is not breached, it looks like oil is on its way up.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.