Drivers around the world are rejoicing as oil extends its recent drop today. After pausing just above the $50.00 level for the early part of this week, West Texas Intermediate crude oil broke down to a new 3-month low on the back of a surprise build in oil inventories yesterday.
Gold has another sell signal, since the last one a little over a week ago gold has fallen $60 per ounce. My research suggests that gold (on the daily chart) has once again turned into a longer term downtrend after being in congestion for more than 5 months--gold has broken out.
Yesterday’s expiration of the August Nymex WTI contract was mostly uneventful with the market trading in a relatively tight trading range. So far this morning the market is on the defensive after the API reporting a surprise build in total U.S. crude oil stocks.