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.

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.

Crude Oil Nears Important Support – Bounce Critical

Crude oil has fallen sharply on the day, testing its 50-day SMA and getting closer to long-standing trendline support. Potential price floors include the approximate trendline level at 68, while previous congestion near 67.50 likewise offers support. A break lower eyes extension towards August spike-lows near 65, while a hold of support keeps the commodity in its 12-month long ascending wedge formation. Resistance in said case would be eyed near 75.

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.

Crude Oil Looks for Breakout From Range

Crude oil has fallen sharply on the day, testing its 50-day SMA and getting closer to long-standing trendline support. Potential price floors include the approximate trendline level at 68, while previous congestion near 67.50 likewise offers support. A break lower eyes extension towards August spike-lows near 65, while a hold of support keeps the commodity in its 12-month long ascending wedge formation. Resistance in said case would be eyed near 75.

Gold prices have thus far held important psychologically significant support at the 1000 mark, but price has been unable to break above yearly highs near 1015. 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.

Crude Oil Tests and Holds Key Support

Crude oil has fallen sharply on the day, testing its 50-day SMA and getting closer to long-standing trendline support. Potential price floors include the approximate trendline level at 68, while previous congestion near 67.50 likewise offers support. A break lower eyes extension towards August spike-lows near 65, while a hold of support keeps the commodity in its 12-month long ascending wedge formation. Resistance in said case would be eyed near 75.

Gold prices have thus far held important psychologically significant support at the 1000 mark, but price has been unable to break above yearly highs near 1015. 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.

Crude Oil Nears Key Technical Support

Crude oil has fallen sharply on the day, testing its 50-day SMA and getting closer to long-standing trendline support. Potential price floors include the approximate trendline level at 68, while previous congestion near 67.50 likewise offers support. A break lower eyes extension towards August spike-lows near 65, while a hold of support keeps the commodity in its 12-month long ascending wedge formation. Resistance in said case would be eyed near 75.

Gold prices have thus far held important psychologically significant support at the 1000 mark, but price has been unable to break above yearly highs near 1015. 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.

6 Month Triangle in Gold

Since the end of February, gold has traded in a contracting range and taken the form of a triangle.  The immediate barriers are 927.60 on the downside and 974.30 on the upside.  However, the critical levels are 907.60 on the downside and 993.60 on the upside.  A break of either of these levels would warrant a breakout strategy.  A break higher targets the all-time high set in March 2008 at 1034.  A break lower could result in a test of the October 2008 low at 681.  Although the break may not occur for a number of weeks, this is a chart worth keeping an eye on.

Crude Oil Holds Support, Further Bounce Likely

Crude oil has found noteworthy support at the 61.8 percent Fibonacci retracement of its multi-month advance at approximately the 60 dollar mark. Said level likewise coincides with its long-standing trend channel and its 100-day Simple Moving Average. Sharply oversold oscillators suggest that we may be in for further corrections through near-term trade, with former support offering resistance at 62.30 and the Crude oil contract’s 50-day SMA at 65.

The COMEX Gold contract has shown signs of a potential break higher, closing above key trend channel resistance on the day’s rallies. Gold has thus far managed to hold the key 61.8 percent Fibonacci retracement of the 870-990 move near 915, and the recent bounce suggests that the overall uptrend is not yet finished. Next important resistance comes at clear congestion levels at the 950 mark. Otherwise, the 50-day Simple Moving Average offers support below current market price.

Silver finds itself in a similar position to gold, but the commodity has thus far been able to break above internal trendline resistance near the 13.50 mark. Furthermore, it is not entirely clear that its short-term downtrend channel has been broken. Similar to Crude oil, Silver finds itself in fairly oversold territory according to daily oscillators. Yet the absence of a more sustained break leaves our short-term bias neutral-to-bearish through time of writing.

Crude Oil Forecast Turns Bullish on Hold of Support

Crude oil has found noteworthy support at the 61.8 percent Fibonacci retracement of its multi-month advance at approximately the 60 dollar mark. Said level likewise coincides with its long-standing trend channel and its 100-day Simple Moving Average. Sharply oversold oscillators suggest that we may be in for further corrections through near-term trade, with former support offering resistance at 62.30 and the Crude oil contract’s 50-day SMA at 65.

The COMEX Gold contract has shown signs of a potential break higher, closing above key trend channel resistance on the day’s rallies. Gold has thus far managed to hold the key 61.8 percent Fibonacci retracement of the 870-990 move near 915, and the recent bounce suggests that the overall uptrend is not yet finished. Next important resistance comes at clear congestion levels at the 950 mark. Otherwise, the 50-day Simple Moving Average offers support below current market price.

Silver finds itself in a similar position to gold, but the commodity has thus far been able to break above internal trendline resistance near the 13.50 mark. Furthermore, it is not entirely clear that its short-term downtrend channel has been broken. Similar to Crude oil, Silver finds itself in fairly oversold territory according to daily oscillators. Yet the absence of a more sustained break leaves our short-term bias neutral-to-bearish through time of writing.

Crude Oil Forecast Remains Bullish on Hold of Trendline

SHORT TERM TECHNICAL OUTLOOK: Crude (WTI) Oil Daily Chart

SHORT TERM TECHNICAL OUTLOOK: Gold 240-Minute Chart

SHORT TERM TECHNICAL OUTLOOK: Silver Daily Chart

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