Energy Hedge Fund Center

A rally has been in progress since May 1 last year and this is now approaching a number of decent horizontal resistance points with momentum stalling. We expect this corrective rally to stall and look to set shorts here with a tight stop.

Gold has formed a potential inverted Head and Shoulders pattern, highlighted by the hourly chart. A break of the neckline and resistance of 1,400 USD/oz should confirm this short-term trade idea.

Gold did a daily bar reversal yesterday. Stochastics buyers, RSI buyers: Let’s buy a one month 1,393 Call on Gold.

Silver prices have slumped to their lowest level since September 2010 and gold prices are down 18% year-to-date leading many market observers to declare that the super-rally in commodities is over. Jim Rogers, the legendary investor and Chairman of Rogers Holdings, says the commodities bull market continues. He calls the latest slump in prices a ... Read More

Rather than wonder if the supercycle has ended, keep watching for confirmations of continuity, or signs of reversal. From an Indian investor’s viewpoint, the debate on whether the supercycle of commodities has ended is relevant for several reasons. A declining trend in commodity prices can take the edge off rising inflation. It not only makes ... Read More

As opposed to the gold and silver markets, which are racing like the Corkscrew at Cedar Point (and the stock market for that matter, which looks like a Gemini rocket), the oil market has been a steady earner for traders this year, despite the weakness other commodities and the economy that might be expected to ... Read More

Gold holdings have fallen below 2,200 tonnes for the first time since July 2011. A 14th consecutive week of reductions has seen holdings drop by 417 tonnes. Rising stock markets at a time of non-existent inflation has pulled the rug underneath gold.

Hedge funds were net-sellers of all sectors apart from grains and livestock during the week ending May 14. Bets on falling gold prices are now at a record. Sugar and natural gas were also net sold, while soybeans, corn and cotton were bought.

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For those who managed to get short in front of 1400, prices have reached the first target on our trade idea, which should find some profit-taking.