Best Financial Markets Analysis Article A key reversal week in December put bears on the alert, following the 2009 recovery that saw a return to the 2008 peak. Doubts over the ability to sustain the higher levels have been strengthened by latest weakness, but we are still waiting for a break of key support.

The Commodity Specialist view

WEEKLY CHART – CONTINUATION:

The 2008 peak started to offer resistance in Oct-09 and in Dec a brief push higher was quickly followed by a Key Reversal Week, which could well mark the end of the latest bull run.

First main support on this chart comes from around the 2919 Feb-09 high.

DAILY CHART – MAR-10:

In the Commodity Specialist Guide, on the back of the key reversal week, we had thought any s/term strength would likely be temporary, with the 3510 Dec high marking a peak for the time being.

Further bear confirmation would now come from a break of the small channel base around 3200 and then the 3148 23.6% pullback level.

We may then focus on the area of the support that includes the 2924 38.2% level, 2857 Feb-09 high and 2800 Fibo projection.

In the Guide suggested shorts

at 3400 now have partial profits at 3200 with stops reduced to cost. The 2924/2800 area provides the next profit target.

Mark Sturdy
John Lewis

Seven Days Ahead
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