Gold tumbles back near 1180
Gold fell sharply yesterday, finding support near the 1180 (S1) line and the 50-period moving average. A clear move below 1180 (S1) is likely to trigger extensions perhaps towards the 1160 (S2) barrier and the lower line of the black upside channel. Taking a look at our short-term oscillators, I see that the RSI fell near its 50 while the MACD has topped and crossed below its signal line. Moreover, both of the indicators violated their black upside support lines. As for the broader trend, I still see a longer-term downtrend. Hence I would treat the recovery from 1132 as a corrective move for now. In 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 precious metal is concerned.
• Support: 1180 (S1), 1160 (S2), 1146 (S3)
• Resistance: 1205 (R1), 1222 (R2), 1235 (R3)
WTI in a consolidative mode
WTI moved in a consolidative manner on Wednesday, staying between the support line of 73.35 (S1) and the resistance of 76.00 (R1). I still believe that the near-term outlook remains negative and I would expect a clear move below the support obstacle of 73.35 (S1) to confirm a forthcoming lower low and perhaps set the stage for extensions towards our next support at 71.00 (S2), defined by the lows of July and August 2010. In the bigger picture, the price structure on the daily chart remains lower peaks and lower troughs below both the 50- and the 200-day moving averages, keeping the overall downtrend intact.
• Support: 73.35 (S1), 71.00 (S2), 70.00 (S3)
• Resistance: 76.00 (R1), 78.00 (R2), 80.00 (R3)