Oil & Gold, Technicals

Crude Oil Trades at Critical Resistance

Crude oil prices previously thundered through trendline support, but the break above trendline resistance led to impressive gains through recent trade. The commodity now trades near previous double-peaks at approximately 76.00, and the next day or so of price action could prove critical to broader direction. Near-term support is seen at congestion near 72.50, while a break of 76 resistance opens up a continuation of recent gains.

Gold prices have set fresh record highs through recent trade, hitting substantially overbought conditions on daily oscillators and showing few signs of slowing. There are obviously no historic levels from which to draw resistance, except to note that price cannot go higher indefinitely. Nearest support is at the psychologically significant 1050 and 1000 marks.

Silver has put in similarly impressive gains, but the mostly industrial metal nonetheless trades at fairly clear technical resistance. The 18.000 mark is a clear psychological level and likewise represents the top of the pair’s year-to-date rising trend channel. Failure at said mark leaves the metal at risk of sharp declines, with next real support not seen until clear congestion at 17.000. Risk/reward favors a short from these levels.