Technical Outlook: Gold, Silver And WTI Crude Oil

GOLD

Considering the Gold’s Break-Pullback-Continuation pattern around $1197 – $1200 horizontal-line, the yellow metal is more likely to extend its south-run towards $1128 & $1110 supports. Though, $1163, $1151 & $1144 may offer intermediate halts to bullion prices during its sustained weakness. In case if prices reverse from present levels, $1197 – $1200 continue acting as strong barrier, which if broken can trigger the metal’s uptick to $1218 & $1232-33 resistance figures. Should there be additional strength on the part of the bullion after breaking $1233, 38.2% Fibonacci Retracement of its December 2015 – July 2016 upside, around $1248-50, becomes important to observe, which if broken enables it to aim for $1260 & 200-day SMA level of $1279.

Silver

Alike Gold, Silver prices are also expected to continue trading down; however, its expected halt is nearer, around $15.95-90, breaking which it could further drop to $15.50, $15.15 and the $14.65 support-levels. Given the white-metal dip below $14.65, it becomes vulnerable to re-test December 2015 lows of $13.65. On the upside, $16.75 and the $17.15 are likely nearby resistances to curb metal’s immediate U-turn, which if cleared may confront with 50% Fibonacci Retracement of its December 2015 – July 2016 upside, at $17.40. If Bulls govern the price-move beyond $17.40, 200-day SMA level of $17.70 & the $18.00 may entertain buyers.

WTI CRUDE OIL

Even if the OPEC deal and the successful reversal from 200-day SMA signals further upside of the Crude, $51.85 – $52.15 becomes an important resistance region for energy traders to observe which may trigger profit-booking in prices. Presently, the quote is likely declining towards $49.40, breaking which $48.50 & $47.80 may offer following rests. Should the energy-vehicle decline below $47.80, 23.6% Fibonacci Retracement of its January – June upside, at $46.30 and the 200-day SMA level of $45.10 become crucial to watch. Meanwhile, $51.30 acts as adjacent resistance for prices before they confront previous mentioned resistance region around $51.85 – $52.15, which if broken can fuel the quote to 61.8% FE mark of $54.00 and then to $55.00. During the Crude’s extended north-run beyond $55.00, it becomes capable enough to print $56.60-70 and the $58.00 on the chart.

Cheers and Safe Trading,

Anil Panchal