Technical Update: Gold, Silver and WTI Crude Oil

GOLD

Following its reversal from $1282, the Gold prices kept running down, as portrayed by three week old descending trend-line; however, the bullion presently trades below the short-term ascending trend-line support, at $1230, sustained clearance of which can drag it to 23.6% Fibonacci Retracement of its March downside, near $1225, quickly followed by $1223. Given the yellow metal’s further decline below $1223, it can drop below March lows of $1208 and can aim for the $1200 mark re-test. Alternatively, $1235 and the mentioned trend-line resistance, at $1238 now, can confine the metal’s near-term advance, clearing which $1240 and $1248 are expected consecutive resistances it should surpass prior to targeting the $1250 mark. Given the bullion’s sustained trading above $1250, it can rise to $1268-70 resistance-area.

SILVER

Although seven month old downward slanting trend-line have been successfully compressing the Silver prices advances, the 50-day SMA, coupled with an ascending trend-line stretched from January, at $15.15 now, restricts the metal’s downside. As the prices recently bounced-off form the near-term strong support, chances of it testing the $15.80 and the $16.00 trend-line resistance are brighter. If at all the metal prices closes above $16.00, it can quickly move up to 38.2% Fibonacci Retracement of its July 2014 – December 2015 downside, near $16.70. Moreover, metal’s successful trading above $16.70 enables it to aim for $17.75-80 resistance-zone. On the downside, a clear break below $15.15 can drag the prices down to $14.60 and then to $14.30 supports while further south-run below $14.30 might find it difficult to clear the $13.60 support, comprising December 2015 lows. If at all the prices continue on its southward trajectory below $13.60, the $12.50-40 is likely area where it could rest.

WTI Crude Oil

Even after breaking the nine month old descending trend-line resistance, Crude prices failed to clear the short-term ascending trend-channel resistance, needless to say the break above 200-day SMA. The energy prices now seems breaking the mentioned trend-channel support, at $38.40 now, which if broken can drag the prices to 23.6% Fibonacci Retracement of its June 2015 – January 2016 upside, at $35.70. Should the prices maintains the downtrend below $35.70, also clearing the $35.50 minor support, the $33.50 and the $32.50 are likely intermediate supports it could witness prior to testing the $30.80 mark. Moreover, sustained downside below $30.80 opens the door for its plunge to re-test January lows around $27.70. Meanwhile, $39.80, followed by 38.2% Fibo, near $40.80, are likely nearby resistances that it should clear prior to challenging the 200-day SMA level of $42.00. Given the Crude’s break above $42.00, the $43.50 might act as a buffer resistance before it could rally to channel resistance and the 50% Fibo level around $45.00 round figure mark.

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