MONTHLY CHART - CONTINUATION:

Note how Sep produced a positive Key Reversal Month, suggesting the bears have had their day.

However, this signal was not apparent on the front month charts so should be treated with a degree of caution.

Note how resistance has so far come from the 23.6% recovery area.

DAILY CHART - DEC-09:

The break through falling resistance was an encouraging sign for bulls.

However, in the Commodity Specialist Guide we had anticipated a deep pullback - which is now occurring.

76.4% support is now under test and we wish to await reaction here before contemplating buy strategies - that said the 4.340 04-Sep low does provide a clear and nearby risk level for buyers.

(Note that a deep pullback on the continuation chart (not yet seen) would imply new front month lows)