WTI, Gold – Technical Review

WTI below 56.00



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WTI plunged on Monday, breaking below the support-turned-into-resistance 56.25 (R1) level. The decline was stopped at 55.00 (S1) support line. A break below that line could push the price even lower perhaps towards our next support of 53.80 (S2) defined by the lows of 30th January 2007. In the bigger picture the overall path remains to the downside and our daily technical studies support this notion. Both the 50- and the 200-day moving averages remain above the price structure and their slope stays to the downside. The 14-day RSI remains within its oversold territory, while the daily MACD, already at extreme low levels, stands below its trigger line pointing down. These momentum signals designate strong downside momentum and reinforce the case that we are likely to see even lower oil prices in the near future.

• Support: 55.00 (S1), 53.80 (S2), 52.60 (S3).

• Resistance: 56.25 (R1), 58.60 (R2), 60.00 (R3).

Gold break two support lines in a row



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Gold plunged on Monday, breaking two support lines in a row. The precious metal found support near the 1190 (S1) area where it remained elevated during the early European hours. Looking at our short-term momentum signals, the RSI found support at its 30 line and moved up, while the MACD fell into its negative territory. Although a test of the 1210 (R1) resistance hurdle seems possible, these mixed momentum signs give me enough reasons to adopt a neutral stance.

• Support: 1190 (S1), 1186 (S2), 1175 (S3).

• Resistance: 1210 (R1), 1215 (R2), 1235 (R3).


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