crude oil and copper demand, sending prices higher.

Crude Oil (Nov 12) intraday: further upside.

Pivot: 91.40 Our Preference: LONG positions above 91.4 with 92.9 & 93.7 as next targets. Alternative scenario: The downside penetration of 91.4 will call for a slide towards 89.8 & 89.3. Comment: the upward breakout of the descending channel is a bullish signal.

The spotlight now turns to September’s US CPI and Industrial Production figures. The annual inflation rate is expected to edge higher to 1.9 percent, marking the highest reading in five months. This may reinvigorate support for gold and silver as hedges against the dilution of paper currency considering the Fed seems determined to maintain an accommodative posture for the foreseeable future. Meanwhile, factory-sector output is expected to rise 0.2 percent following a sharp 1.2 percent drop in the prior month and capacity utilization is seen rebounding to 78.3 percent having hit a nine-month low in August. Signs of a pickup in industrial activity may buoy the outlook for crude oil and copper demand, sending prices higher.

On the earnings front, third-quarter results from freight transportation giant CSX Corp may stir volatility. The company is highly sensitive to the ebb and flow of the business cycle and traders will look toward its guidance to help shape the outlook for global demand trends in the months ahead. This too may produce ripples in crude oil and copper prices. A survey of economists polled by Bloomberg suggests that the markets’ consensus expectations for global growth this year and in 2013 have been revised lower over recent weeks. This means that relatively negative guidance will complement views already priced in to some extent, putting the risk of surprise-driven volatility on the upside.

WTI Crude Oil (NY Close): $91.85 // -0.01 // -0.01%


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