Gold and WTI Crude Oil Technical’s (Weekly)
Spot Gold finished sharply higher for a 2nd week running, closing at 1,274.40 oz, as risk aversion helped the precious Yellow metal to resume its Bullish trend from earlier this year.
Risk aversion, prompted by China and the UK, underpinned the commodity, alongside with the Uturn in market’s hopes of a US Summer rate hike.
The coming days will be critical for Gold, as if the Fed refrains from acting, as it has scope to extend beyond this year’s high at 1,303.00, with market talks now pointing for a test of 1,500.00.
Bullion is now above the 61.8% Fibo retracement of its latest daily low, at 1,263.80, and technical readings in the daily favor further advances, as the indicators continue to head North within positive territory, as the price moved above the 20 and 100-Day MA’s.
In the 4 hours, the 20-Day SMA maintains a strong Northward slope some cents below the above mentioned Fibo mark, and after crossing the 100 and 200-Day SMA’s, supporting a Bullish continuation, the technical indicators have lost some strength, indicating the possibility of a limited Southside corrective move ahead of the next leg higher.
Support marks: 1,263.80 1,256.65 1,244.40
Resistance marks:1,283.20 1,296.65 1,303.65
WTI Crude Oil
WTI Crude Oil prices shed around 3% Friday, with WTI Crude futures ending the week at 48.85 bbl. A USD, alongside with the Baker Hughes (NYSE:BHI)report showing that the US rig count rose for the 2nd straight week, fueled the decline.
The number of active rigs in the US rose by 3, to 328 in the prior week, although the decline was moderated by problems in Nigeria, as local terrorists blew up a trunk line for Crude Oil. Having rallied up to fresh year highs near 52.00 bbl.
The daily for US benchmark shows that Crude Oil closed below its 20-Day MA, the Momentum indicator is crossing its 100 mark towards the Southside, and the RSI indicator heads sharply South around 52, indicating the price may fall further.
In the 4 hours, the technical’s favors the Southside, as the price has broken below the 20 and 100-Day SMA’s, the RSI indicator maintains its Bearish slope near oversold, and the Momentum indicator consolidates below the mid-line, looking for a test at 46.75, the 19 May low.
Support marks:48.30 47.50 46.75
Resistance marks: 49.45 50.20 50.90
Have a terrific week.