Technical Outlook for Gold & WTI Crude Oil (Weekly)

Technical Outlook for Gold & WTI Crude Oil (Weekly)

Technical Outlook for Gold & WTI Crude Oil (Weekly)



Spot Gold fell last week, closing at 1,210.09 oz, the lowest close since late February 2016. Gold fell for a 4th week running, in what has begun as a downward correction movement after testing at 1,300.00, turning into a Bearish trend, on speculation the US Fed will raise rates in June or July.

Friday, news that the US grew faster than estimated, with the annualized Quarterly GDP revised up to 0.8% from 0.5%, and comments from Janet Yellen suggesting an early interest rate hike may be appropriate, drove the price decline.

The daily supports a continued decline, given that the price has broken below its 100-Day MA for the 1st time since late January, and the technical indicators keep heading lower near oversold territory.

The 100-Day MA converges with a daily ascendant trend line, also broken during these past days at 1,239.10 for Monday, providing a selling mark in the case of an upward corrective move.

In the 4 hours, the RSI indicator hangs around 30, unable to suggest an upward corrective move, the Momentum indicator is hanging flat below its 100 line and the price is below a strongly Bearish 20-Day SMA, at 1,221.80, all of which supports the longer term Southside outlook.

Support marks: 1,206.70 1,190.90 1,181.50
Resistance marks:1,221.80 1,230.80 1.239.10

WTI Crude Oil

Friday, WTI Crude Oil (NYSEArca:USO) prices started the day in the Red, but later recovered on the back of the Baker Hughes (NYSE:BHI) rig count report, showing that the Oil drilling rig count in the US fell by 2 in the prior week, down to 316, which results in a 35% decline in the total number of rigs drilling Oil & Gas over the last year.

WTC Crude Oil prices ended the week at 49.56, with the latest Bullish trend firm in place, mostly on speculation of a continued decline in worldwide supply as demand picks up.

US light Crude Oil continues trading above a strongly Bullish 20-Day SMA on thedaily, currently at 47.10, while in the same chart, the Momentum indicator retreated partially within Bullish territory, and the RSI indicator keeps consolidating near overbought marks, pointing for some consolidation this week of a new leg North.

In the 4 hours, the technical indicators have recovered from around their mid-lines, and head North within positive territory, the price recovered quickly after a short lived slide below a Bullish 20-Day SMA, also suggesting Black Gold will keep advancing this week.

Support marks: 49.20
Resistance marks: 50.20 51.00 51.85

Have a terrific week.

The following two tabs change content below.

Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

You must be logged in to post comments :