Technical Checks Of Gold, Silver & WTI Crude Oil – 06.01.2017

GOLD

Ever since the Gold reversed from $1126-28 support-zone, it managed to extend advances to the present level near a month’s high. However, $1197 – $1200 horizontal resistance-region, comprising 50-day SMA, may give a tough fight to the Bullion, which if broken needs to confirm price-strength by surpassing four-month old descending trend-channel resistance, at $1205 now. Given the metal successfully trades beyond $1205, the $1233-34 may act as an intermediate halt before it could challenge another important area of $1248-50, which includes 38.2% Fibonacci Retracement level of December 2015 – July 2016 upside and 100-day SMA. In case if strong US Jobs report drag the yellow metal towards south, $1166-65 is likely an immediate support to watch before we examine chances to witness $1148-45 and then to $1128-26 re-test. If the quote fails to respect $1126, it becomes vulnerable enough to plunge towards $1100 and the channel support-line of $1088.

SILVER

Alike Gold, the Silver is also heading towards its short-term immediate resistance level of $16.90, comprising 50-day SMA, but is likely to face few obstacles from US details due to recent improvement in Chinese data-points and may clear the mentioned SMA figure, which in-turn favor its upside to $17.20. Should the white-metal break $17.20, the $17.60 could entertain intermediate traders before fueling prices to $17.75-80 region, encompassing 200-day SMA and resistance-line of nearly four-month old descending trend-channel. Given the Bull-power persists beyond $17.80, it becomes wise to expect $18.45-50 on the chart but a broader downward slanting TL, at $18.70, could restrict its further upsides. Alternatively, $16.30-25 seems a nearby support for the metal, breaking which $15.90 and the $15.65 are likely following downside figures to watch. However, its further declines below $15.65 could be confined by channel-support of $15.25, which if broken might drag prices to $14.75.

WTI CRUDE OIL

Even as month-old ascending trend-line support triggered Crude upswing, the important $54.65-70 area, comprising ascending trend-line and recent high, could restrict its further advances. If at all the energy vehicle rallies beyond $54.70, the 61.8% FE level of $56.00 is likely next-stop before confronting another important resistance-region of $56.50-60, which if broken could fuel northward trajectory towards $59.00 and then to $60.00. Meanwhile, $52.90 and the $52.20 are expected nearby supports for prices, clearing which previously mentioned trend-line figure of $51.80 again comes into play. Should Bears gain command over Oil below $51.80 support, chances of the quote’s plunge towards $49.80 can’t be denied.

Cheers and Safe Trading,
Anil Panchal