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.