Technical Overview: Crude Oil, Gold And Silver

Crude Oil [WTI]

While break of six month old descending trend-line, also comprised of 100-day SMA, propelled the Crude prices to fresh 2016 highs, the energy instrument might find it difficult to clear the 200-day SMA level of 42.90, which if broken, can stretch its upward trajectory to 43.80 and the 46.50 resistance levels. Moreover, sustained trading above 46.50 can help the Crude prices accelerate its upside to 61.8% Fibonacci Retracement of its June 2015 – January 2016 decline, near 49.00 mark. Meanwhile, a daily close below 38.2% Fibo level of 40.80 by the commodity can make it witness 40.00 – 39.85 and the 38.00 as follow-on support-zone before revising the 100-day SMA level, at 37.00 round figure mark now. If prices fail to hold 37.00, chances of further dip to 35.30 and then towards 33.50, become brighter.

GOLD

Even if the Gold prices managed to sustain a break of two year old descending trend-line resistance, closing breaks above upper-line of a longer-term descending trend-channel, presently at $1256, becomes necessary for the metal to aim for $1300 round figure mark. Given the bullion’s sustained advance beyond $1300, the $1340-45 and the $1375 are likely intermediate resistance that it needs to counter prior to targeting $1400 resistance level. Alternatively, a weekly close below $1225 immediate support can raise doubts over its recent advance, breaking which the precious metal becomes weaker enough to re-test $1185 and the $1170 numbers on the downside. Should it continue on south-run below $1170, the $1127 becomes an important level to watch for bullion traders, which if broken can fetch the prices to sub-1100 area.

SILVER

Alike Gold, the Silver prices are also struggling with an important resistance level, comprising downward slanting trend-line stretched from September 2014, around $16.00 round figure mark. Given the white metal’s capacity to break the same, it can quickly rise to $16.35 and to the 38.2% Fibonacci Retracement of its July 2014 – December 2015 downside, near $16.65. Moreover, successful breakout of $16.65 can extend the metal’s northward rally to $17.30 and $17.80 resistance levels. On the downside, failure to close above $16.00 might trigger its immediate pullback to 23.6% Fibo level of $15.50 and $15.00 supports, breaking which $14.60 and $14.30 are likely intermediate numbers for the prices to rest at prior to revisiting the 2015 lows of $13.60.

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