Gold and WTI Crude Oil Technical’s (Weekly)
Gold: Spot Gold extended its advance, closing the week at 1,344.35 oz, on added risk aversion, adding to Brexit concerns, was poor data coming from China.
Early Friday, the Caixin Manufacturing PMI for June came in at 48.6 down from 49.2 in May, and the NBS index edged down to 50.0, after posting moderate advances for 3 months.
Gold closed at its highest mark since March 2014, and the daily supports some further gains this week, given that the technical indicators have turned strongly higher within positive territory, and the 20-Day SMA has accelerated its advance, and now approaches the 38.2% Fibo retracement of the latest Bullish run around 1,297.25.
In the 4 hours, the RSI indicator heads North in overbought territory, at 74, and the Momentum indicator lacks directional strength, consolidating above its 100 mark. The 20-Day SMA has turned North above the 23.6% Fibo retracement of the mentioned rally at 1,320.50, reinforcing the Key support in the case of a sudden decline.
Support marks: 1,335.56 1,326.60 1,320.50
Resistance marks:1,351.90 1,358.40 1,366.20
WTI Crude Oil: US Crude Oil prices recovered some Friday, with WTI futures closing the week up at 49.27 bbl.
According to the Baker Hughes (NYSE:BHI) rig report, the US Oil drilingrig count rose by 11 to 341 last week, the largest increase in 6 months, and up 4 out of the last 5 weeks, as rising prices encouraged producers to resume production.
Once released, the data barely affected prices, as the commodity remained buoyed on the back of strong rallies in energy related stocks.
Black Gold may have found equilibrium, having been trading between 45.00 and 52.00 the last 2 months. Oversupply worries have not fully disappeared, and further gains may be elusive. As a decline back to the 25 – 30 region, is not out of sight.
Technically, the daily chart shows that the price continues moving back and forth around a Bearish 20-Day SMA, but also that the technical indicators maintain a Neutral stance, lacking clear directional strength around their mid-lines.
In the 4 hours, the price is above its moving averages and the 20-Day SMA heads sharply higher, although in a tight range, chances of an upward acceleration are limited. The Momentum indicator heads North above 100, as the RSI heads up around 58, offering a modest Bullish bias for this week.
Support marks: 48.90 48.20 47.50
Resistance marks: 50.00 50.60 51.65
Have a terrific week.