Gold and WTI Crude Oil Technical’s (Daily)
Gold prices spiked again Thursday, with Spot Gold at 1,271.67, its highest since 18 May, in spite of the Buck’s strength, benefited by sour market’s sentiment.
Thursday, the US major stock market indexes reversed on risk aversion, triggered by fears that the global economic slowdown may resume, added to diminishing chances of a US rate hike, underpinning the precious Yellow metal.
The Gold price has broken above a Key Fibonacci mark, as the price is now above the 61.8% Fibo retracement of its latest daily fall at 1,263.80, with scope to keep on gaining, given that in the daily, the price is now far above its MA’s, and the technical indicators head sharply North above their mid-lines.
In the 4 hours, the technical indicators entered extreme overbought territory, and despite having lost Northward strength, are far from signaling exhaustion.
In the same chart, the 20-Day SMA extended its advance after crossing above the 100-Day SMA and is about to move above the 200-Day SMA, all of which supports some further advances, on a break above Thursday’s daily high.
ECB President Mario Draghi warned that the Eurozone is at risk of lasting economy damage. PE
Support marks: 1,263.80 1,256.65 1,244.40
Resistance marks:1,271.70 1,283.20 1,296.65
WTI Crude Oil
WTI Crude Oil (NYSEArca:USO) prices retreated from YTD highs on profit taking, driven by broad USD strength.
West Texas Intermediate (WTI) Crude Oil for Jul delivery pulled back from a high of 51.64 bbl and closed 1.3% lower at 50.66 on NYMEX.
Both WTI Crude and Brent Crude have risen around 90% since bottoming in February, buoyed by output disruptions in Nigeria, falling US inventories and fading expectations of a rate hike by the US FOMC.
The daily for WTI Crude Oil shows that the intra-day decline stalled above a Bullish 20 -DaySMA, currently at 49.20, the RSI indicator retreated from overbought levels, and the Momentum indicator turned South just above 100, suggesting the Southward move can extend Friday.
In the 4 hours, the price is now hanging around a Bullish 20-Day SMA, and the technical indicators corrected extreme overbought readings, but pared losses and turned flat above their mid-lines, indicating limited selling interest for now.
The daily low was set at 50.22, the mark to break to see the Southward move extending near term.
Support marks:50.20 49.50 48.90
Resistance marks: 50.90 51.65 52.20