WTI Crude Oil & Gold Daily Analysis – June 29, 2017

WTI Crude Oil

Crude oil prices are under buying pressure as a result of inventory reports that published yesterday. The report indicates that demand has increased to some extent after a slow start to U.S. summer driving season.

OPEC delegates have notified that they will not rush to cut crude output further or end exemptions, although a meeting in Russia next month is likely to consider further steps to support the the recent output.

Technical Outlook

If you have a look at the Crude oil prices for the past few days, prices breaks higher constantly since the previous week downtrend. As I noticed yesterday, crude oil closed higher nearby horizontal resistance area at $ 45.25. This could be analysed as a turning point for further direction. I believe that crude oil prices will break above the horizontal resistance line and reach towards $ 46-48.50 in the near term.

Crude oil prices already broken out the falling wedge resistance line around $43.5 which now serves as a strong support.

Gold

Gold prices bounced off session lows, buoyed a slump in the dollar as U.S. political uncertainty resurfaced, after the Senate’s decision to delay a vote on a healthcare bill raised fresh doubts about President Trump’s ability to deliver on his pro-growth economic agenda.

President Trump has reiterated several times that healthcare reform would need to be passed before his administration moves ahead with tax reform, which is widely viewed as a pro-economic growth measure.

Technical Outlook

Gold daily chart is trading inside long red candle even though it indicates consolidating mode range between $1258-$1236 and retested support slope line which is former support at $1240, next additional supports at $1233/ $1215.

The green line drawn in the chart indicates that on every occasion, the trend line touches the support area. I have been monitoring this pattern and have derived the formation of Diamond chart pattern which is formed at the bottom place under reversal pattern. If it breaks above $1260 and closes the day candle above this price, then the trend could move from negative to positive which will climb further towards $1275-1300.