COMMODITIES: Recent Weakness in WTI Futures Marks Extension of Corrective Cycle

0NJ5 96.20/96.60/96.80 broken call fly, bought for 6.75 in 4k.

WTI futures are holding on to the bulk of their recent gains. A stronger reversal to the upside has exposed key short-term resistance at $76.41, the Oct 8 high. A firm resistance at $71.97, the Nov 7 high, has been breached, strengthening a bullish theme. On the downside, a reversal lower would expose support at the 20-day EMA, at $70.78. This average is seen as a key short-term support. A bear threat in Gold remains present despite the latest recovery. The yellow metal traded sharply lower on Dec 18 and the move undermines a recent bull theme. A resumption of weakness would open key support at $2536.9, the Nov 14 low. The first firm support to watch is $2583.6, the Dec 19 low. On the upside, a resumption of gains would instead signal scope for a climb towards resistance at $2726.2, the Dec 12 high.

• WTI Crude down $0.34 or -0.46% at $73.32
• Natural Gas down $0.15 or -4.09% at $3.524
• Gold spot up $5.34 or +0.2% at $2641.45
• Copper up $3.15 or +0.76% at $419.45
• Silver up $0.24 or +0.8% at $30.1951
• Platinum up $10.36 or +1.11% at $946.97

A bull cycle in the Eurostoxx 50 futures contract remains intact. Yesterday’s strong rally highlights a reversal of the recent corrective pullback and attention is on resistance at 5040.00, the Dec 9 high. Clearance of this level would confirm a resumption of the bull cycle that started on Nov 21 last year. On the downside, initial firm support lies at 4921.43, the 50-day EMA. A break of 4829.00, the Dec 20 low would reinstate a bearish theme. A bear threat in the S&P E-Minis contract remains present despite the most recent gains. The reversal lower from the Dec 26 high, highlights the end of the Dec 20 - 26 correction. Attention is on 5866.00, the Dec 20 low and a key S/T support. Clearance of this level would strengthen a bearish theme. Initial firm resistance is 6107.50, the Dec 26 high. A breach of this hurdle would highlight a bull reversal and open key resistance at 6178.75, the Dec 6 high.

• Japan's NIKKEI closed higher by 776.25 pts or +1.97% at 40083.3 and the TOPIX ended 30.19 pts higher or +1.1% at 2786.57.
• Elsewhere, in China the SHANGHAI closed higher by 22.721 pts or +0.71% at 3229.644 and the HANG SENG ended 240.71 pts lower or -1.22% at 19447.58.
• Across Europe, Germany's DAX trades higher by 42.85 pts or +0.21% at 20258.86, FTSE 100 lower by 21.85 pts or -0.26% at 8227.86, CAC 40 up 23.73 pts or +0.32% at 7469.42 and Euro Stoxx 50 up 10.53 pts or +0.21% at 4997.17.
• Dow Jones mini up 4 pts or +0.01% at 42984, S&P 500 mini up 5 pts or +0.08% at 6025.25, NASDAQ mini up 17.75 pts or +0.08% at 21762.25.