Oil & Gold, Technicals

Crude Oil breaks Major Support Trendline – What’s Next?

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 fallen substantially off of their highs and currently trade at important congestion. The 985-995 zone marks a great number
of intraday troughs, and price may have a difficult time breaking lower. Near-term resistance is fairly clear at the psychologically significant 1000 mark, while a break below 985 eyes extension towards the key 61.8% Fibonacci retracement of the 930-1025 move at 968.

Silver has reversed from clearly overbought levels, and now trades at key congestion at the 16.000 mark. Said level represents the 38.2% Fibonacci retracement of the 13.50-17.60 move and previously significant highs. A hold of said level would suggest further rallies are likely, but a break lower eyes a test of trendline support and the 61.8% Fibonacci retracement of the aforementioned near 15.000. This could be a fairly significant turning point for silver prices.