Gold, Silver and WTI Crude Oil: Technical Overview

GOLD

Following its pullbacks from $1262, the Gold dropped below 50-day SMA for the first time since early January and is presently struggling to clear the same moving average, failing to which indicates its quick downside to two month-old ascending trend-line support, at $1215. Given the metal’s daily close below $1215, it can rest around $1200 round figure mark support prior to testing the $1180 and the 50% Fibonacci Retracement level of its December 2015 – March 2016 upside, near $1164. If all the bullion continue dipping down below $1164, it becomes weaker enough to plunge towards $1130 and the $1110 support levels. Should the bullion manage to clear the 50-day SMA level of $1233 on a closing basis, $1245 and the downward slanting trend-line, at $1255 now, are likely nearby resistances it needs to break in order to revisit the $1268 and the March month highs around $1282. Moreover, the metal’s successful trade beyond $1282 enables it to surpass the $1300 mark and can aim for January highs of $1307.

SILVER

Ever since the Silver prices reversed from 200-day SMA, it rallied to six month highs; however, two-month old broad upward slanting trend-channel resistance, at $16.30 now, confined its further up-move. The metal again seems heading to conquer with the mentioned channel resistance, which if broken, can propel the prices to $16.50-55 and $16.80 resistances. If Silver advance beyond $16.80, the $17.30 is likely a buffer level that it needs to clear prior to revisiting the May 2015 highs around $17.80. Alternatively, $15.85 is likely an immediate support that the prices could witness on a pullback, breaking which 50% Fibonacci Retracement of its May – December 2015 decline, near $15.65, and the $15.45 are likely consecutive levels that it can witness. Given the sustained downside below $15.45, 38.2% Fibo, near $15.20 and the channel support, also including the 200-day SMA, around $14.90-85, may hold its additional south-run limited.

WTI Crude-Oil

Crude’s bounce from 100-day SMA failed to clear the $43.50-60 horizontal support-turned-resistance and is now indicating a quick test to 38.2% Fibonacci Retracement of its June 2015 – January 2016 downside, near $40.80, which if broken can further drag the energy prices to $39.00 and the short-term ascending trend-channel support of $37.50. Should the Crude price failed to hold its decline at $37.50, it can re-test the 100-day SMA support of $36.25 prior to aiming the $35.30 mark. On the upside, a clear break above $43.60 can trigger the prices rally to $44.80, comprising 50% Fibo, clearing which the channel resistance level of $46.50 is an important number for the crude traders to watch. Given the price break above $46.50, chances of its north-run to aim for $49.00, including 61.8% Fibo, can’t be denied.

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