Oil & Gold, Technicals

Crude Oil Forecast Bearish as Contract Breaks Key Support

Crude oil has fallen sharply on the day, breaking resoundingly below trendline and moving average support. Next targets include the commodity’s 200-day Simple Moving Average at 62.31, with previous spike lows near said mark reinforcing its significance. The breakdown bodes poorly for near-term price action, and previous congestion near 68 provides nearest resistance.

Gold prices have thus far held important psychologically significant support at the 1000 mark, but price has been unable to break above substantial highs. Continued failure at said level would keep the commodity price in its long-term ascending triangle formation—leaving a return to trendline support near 950 as the more likely outcome. Closer price floors can be found at the psychologically significant 1000 mark.

Silver has hit extremely overbought territory on its run to fresh 12-month highs, and continued rejection of 17.000 would make further short-term corrections likely. Said level represents congestion from 2008 and has thus far provided a formidable price ceiling. Given daily RSI well-above overbought levels, corrections are likely. Near-term support is at recent congestion of 16.50, while the psychologically significant 16.00 mark could likewise provide a price floor.