Crude 2nd Round Decline Just Started

Unsurprisingly but expected, the crude is waiting the coming China's manufacturing data for the next direction, look at the chart is likely to drop further from here, supporting the break to the downside is the "Leaking" as chart above.

Technical Gold Bear Vs QE Hope

From technical standpoint, gold bear have to complete its cycle to extreme target $1360~$1370 not later than blue line as above which in simple word somewhere within 6 week from next week onward, it is something worth paying attention to weekly chart when the bearish nature of gold's technical are analyzed, the 2nd & 3rd fanline just perfectly serve as Gold's Descending Trend Channel, a strong downward momentum will started if Fed say no QE in coming FOMC.

Crude 2nd Round Decline Just Around The Corner

The crude seem to plunge more after World Bank cuts China 2012 growth outlook and Credit Suisse predicting that China's commodity-demand peak has passed, highlighting a structural decline in China's commodity demand. All in all, then and then, along with other commodities like Gold, the potential big all-in decline just around the corner.

Dead Gold Bound To Get Burned Soon

Considering how bad and scary look is the fact that its 150 DMA still remains below 200 DMA, the "dead cat bound" might count as the beginning of extreme bear warning likely continuation of the downtrend. The traditional safe haven status of Gold are likely to be shunned by investors then shifted to US dollar as occurred in 2008, it is a good reason now to run away from the burning Gold.

Gold Bear On The Table Now

As mentioned before and can be seen here, in looking at the daily chart above should Gold on track to its extreme target of $1360~$1370 very soon because it already break below its both parabolic support level and 2008 support trendline.

When crude started to weaken in early of May, it serve as a precursor for weakness to come in Gold, the timing of that call made note such a possibility to take Gold down to at least 150 DMA of weekly chart, perhaps the potential answer to this question brings us back to 2008 soon after.

Crude may drop pretty soon

As mentioned in previous post, crude may not able to make an U-turn, unless crude can reclaim and sustain above $105, otherwise any possibility decline below $102 would strongly signal to the downside, based on the bearish look daily chart of crude, it seem likely another leg down pretty soon.

Rising of the Gold Bear

Interestingly, in looking at the Gold weekly chart, there are some sideways trading been developed along 3rd fan line but still headed to the downside.

Supporting the downside is the fact that Gold's 150 DMA still remains below its 200 DMA, it has been tried very hard to climb and reclaim but fail, now its parabolic support just formed exactly at $1611, any price break below this level shall trigger a big move, likely to the extreme target of $1360~$1370.