NYMEX crude oil prices hit $80, gold prices trade near $1070.80 record high

Heads up. Crude oil futures have hit the $80 level, with a current session high of $80.05 according to NYMEX. Bloomberg reports that :

Crude oil prices rose above $80 per barrel for the first time since Oct 2008 in New York while gold prices traded near an all-time high of $1,070.80 reached on 14 Oct 2009 as the USD slipped to a 14-month low against the euro, dropping to 1.4994. Crude oil for Nov 2009 delivery rose to $80.05 on NYMEX. Oil prices have gained 25% in 3 months on a stock market recovery and the sliding US dollar, with the USDX falling to 75.181. Gold prices have gained 21% for the year as a weak USD and rising government debt spur inflation concerns. Other commodities also posted gains, with copper making a 6-week high, rubber advancing to a 1-year high and corn reaching 3-month highs.

- It's still early days yet but as I've said earlier crude oil prices *may* be heading for a consolidation period between $75 to $80, give or take $5. $75 has been a critical resistance level now broken through, the next step is to test its potential as support. The next resistance level which is $80 was briefly touched and exceeded by just 5 cents. The next real test appears to be around $90 to $100 which is what I might want to be shooting for.

I've got a couple of ill-fated oil trades which ought to do pretty well if $80 is breached, and to balance that out, I've got a couple of 50% gainers which I'm holding for now. If you are looking to go into the market at this point you're either a rather short-term trader (to trade in and out) or a longer-term-oriented peakoiler/investor (in which case you'd be buying regularly anyway and holding on for the ride). The technicals are looking overbought but you know what they say about the markets staying irrational longer than you can stay solvent. Best to be on the lookout.

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