Gold, WTI – Technical Review

Gold surges above the key line of 1180


Gold, WTI, Commodities Trading Account?

Gold shot up, breaking back above the key area of 1180 (S1), but found resistance at 1195 (R1), pretty close to the 50% retracement level of the 21st October – 7th of November down wave. The move above 1180 (S1) confirms a higher high on the 4-hour chart and alongside our momentum signs amplifies the case for further upside. On the daily chart, the 14-day RSI moved higher and looks ready to challenge its 50 line, while the MACD crossed above its trigger and is pointing up. A clear move above 1195 (R1) is likely to target the next resistance at 1205 (R2), which lies slightly below the 61.8% retracement level of the aforementioned decline. However, regarding the broader trend, I still see a longer-term downtrend. Hence, on the absence of any major bullish trend reversal signal, I would prefer to adopt a “wait and see” stance as far as the overall outlook of the yellow metal is concerned.
• Support: 1180 (S1), 1146 (S2), 1132 (S3)
• Resistance: 1195 (R1), 1205 (R2), 1222 (R3)

WTI challenges the 76.00 area as a resistance this time


Gold, WTI, Commodities Trading Account?

WTI found some buy orders near the 73.35 (S1) line and rebounded to test the 76.00 area as a resistance this time. On the daily chart the price structure remains lower peaks and lower troughs below both the 50- and the 200-day moving averages, thus I still see a negative overall outlook. I would expect the recent rebound or any possible short-term extensions of it to provide renewed selling opportunities. A clear and decisive dip below the 73.35 (S1) obstacle would signal a forthcoming lower low and perhaps see scope for extensions towards our next support at 71.00 (S2), defined by the lows of July and August 2010.
• Support: 73.35 (S1), 71.00 (S2), 70.00 (S3)
• Resistance: 76.00 (R1), 78.00 (R2), 80.00 (R3)

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