Gold, WTI Technical Review

Gold stays above 1160


WTI Trading Account?

Gold continued ranging, staying between the 1160 (S1) hurdle, which coincides with the 61.8% retracement level of the October 2008 – September 2011 major advance, and the key support-turned-into-resistance barrier of 1180 (R1). Today, during the early European morning, the metal moved lower somewhat and could challenge again the 1160 (S1) area any time soon. If the bears are strong enough to overcome that obstacle, I would expect them to target the low of the 19th of April 2010, at 1125 (S2). Although the MACD remains above its trigger line and is pointing up, the RSI found resistance near its 30 line, turned down and seems willing to stay a bit longer within its extreme zone. This adds to my view that we may see the yellow metal lower in the near future.
• Support: 1160 (S1), 1125 (S2), 1100 (S3).
• Resistance: 1180 (R1), 1205 (R2), 1222 (R3).

WTI dips below 78.00


WTI Trading Account?

WTI continued tumbling on Tuesday, falling below the support (turned into resistance) hurdle of 78.00. However, WTI found support near 76.00 before rebounding somewhat. As long as the 79.40 (R2) line holds as a resistance, I would maintain the view that the price is likely to challenge the psychological zone of 75.00 (S2), defined by the lows of October 2010. On the daily chart, the price structure remains lower lows and lower highs below both the 50- and the 200- day moving averages, keeping the overall path to the downside. Moreover, the 14-day RSI dipped again within its oversold field, while the daily MACD, already negative, has turned down and fell below its signal line. This designates accelerating downside momentum and amplifies the case for further declines in the close future.
• Support: 76.00 (S1), 75.00 (S2), 71.00 (S3).
• Resistance: 78.00 (R1), 79.40 (R2), 81.00 (R3).

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