News and Trade Ideas (Commodities)

[MongiIG]

Gold and Brent crude showing tentative signs of an impending bullish reversal

Gold and Brent crude show signs of potential impending bullish reversals, with tentative grounds for optimism over Omicron raising the chance we see recent moves unwound.

Source: Bloomberg

 Joshua Mahony | Senior Market Analyst, London | Publication date: Monday 06 December 2021 

Gold rebounds from key support, although Fibonacci now comes into play

Gold has been on the rise since Thursday’s decline into the key $1760 support level. That key level represents the lows from both mid-October and early-November.

The intraday trend of lower highs does remain in play for now, with a push up through the $1794 level required to bring a more reliable bullish signal. However, the current respect of the 76.4% Fibonacci resistance level at $1787 signals a potential continuation of this bearish phase.

As such, a more reliable signal comes with a break through either $1794 (bullish) or $1760 (bearish).

Source: ProRealTime

Brent crude showing signs of potential strength after recent selloff

Brent crude has seen significant losses over the course of the past fortnight, with price driving down towards the key August low of $64.66. A move below that threshold would reverse the long-term bullish trend.

However, we are seeing some consolidation above that level, bringing an increased chance of a bullish reversal. A push up through the $72.82 resistance level would bring greater confidence of that bullish reversal for Brent.

Source: ProRealTime

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Gold struggles as oil prices move higher

Gold remains stuck below $1790, but oil prices have made headway in early trading.

Source: Bloomberg

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Tuesday 07 December 2021

Gold

The rebound in risk assets has left gold out in the wilderness, stuck below $1790 with no sign that a bounce will materialise.

Gains over the past two sessions have stalled below $1790, and it would take a daily close above $1800 to revive the bullish view.

For now a neutral outlook prevails, since sellers have yet to successfully drive the price below $1765, and crucially, keep it below that level.

Source: ProRealTime

WTI

Oil prices, however, have managed to move higher, and here the price is back above the 200-day simple moving average (SMA) of $70.

Further gains target the 26 November high at $72.75. Backed by rising stochastics and a potential turn higher in the moving average convergence/divergence (MACD), intraday weakness should remain a buying opportunity for now.

Source: ProRealTime

[MongiIG]

Gold in consolidation mode as Brent crude powers higher

Gold and Brent crude regaining ground, although while we are seeing strong energy momentum, precious metals remain stuck in consolidation mode.

Source: Bloomberg

 Joshua Mahony | Senior Market Analyst, London | Publication date: Wednesday 08 December 2021

Gold starts to gradually regain traction from key support

Gold has started to regain traction after the recent decline into the key $1760 support level. A break below that threshold brings expectations of a period of downside from here.

However, with price instead starting to push higher, a rise through $1795 could start to build a more bullish short-term picture.

Source: ProRealTime

Brent crude in recovery mode as markets' Omicron fears ease

Brent crude has been on the front-foot over the course of the week thus far, with price pushing back into the 61.8% Fibonacci resistance level.

While we have seen some short-term downside movement overnight, it is likely that we continue on this bullish recovery play before long.

A break below the $69.18 level would be required to bring about a more neutral outlook.

Source: ProRealTime

[MongiIG]

Gold and Brent crude ease back in early trade

Gold and Brent crude start to ease back in early morning trade, but recent gains could signal the potential for further upside.

Source: Bloomberg

 Joshua Mahony | Senior Market Analyst, London | Publication date: Thursday 09 December 2021 

Gold easing back within rebound from key support

Gold has been attempting to regain lost ground throughout December thus far, following a decline into the crucial $1760 support level.

With price easing back this morning, the risk is a decline through the $1772 level to bring about another challenge of $1760. As such, look out for a break through the likes of $1772 or $1795 as a gauge of where we go from here.

Source: ProRealTime

Brent crude starts to lose traction after recent rebound

Brent crude has been regaining ground over the course of the past week, with fears around the potential for lengthy Omicron lockdown measures easing. However, we remain within a bearish trend until price breaks up through $82.03 swing-high.

With price back at the 100-simple moving average (SMA), we are seeing declining momentum. A break below the $74.28 level would bring about a short-term sell signal. Until then, this intraday rebound looks set to persist.

Source: ProRealTime

[MongiIG]

Gold struggles as oil looks to recover

Gold prices are declining for a second day, while oil prices have managed to recoup some of Thursday’s losses.

Source: Bloomberg

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Friday 10 December 2021

Gold

Losses continue to prevail here, and a test of $1765 seems to be in the offing.

Gold's failure to rally, and a potential turn lower for stochastics in coming days, points towards a revived bearish view that could see a fresh move towards much longer-term trendline support near $1740.

A move above $1790 would be needed to reverse this view.

Source: ProRealTime

WTI

After dropping back towards the 200-day simple moving average (SMA) yesterday the price has bounced, but it will need to push on above $72.75 to provide a renewed bullish view.

At present the outlook remains neutral, with a reversal below $70 boosting the bearish view.

Source: ProRealTime

[MongiIG]

Gold stuck in a range while Brent held below $74

Gold continues to trade sideways, while Brent crude is stuck below $74.

Source: Bloomberg

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Monday 13 December 2021 

Gold

Gold buyers have managed to stem any further losses, but the tight range of the month so far continues in place.

The price is oscillating between lows down towards $1765 and highs near $1790, and so we wait for a break out of this range to provide direction.

Source: ProRealTime

Brent

Gains have stalled at the 100-day simple moving average (SMA), but until we see a drop back below $73.75 the bullish view continues to hold sway for Brent.

Further gains towards $78 challenge trendline resistance from the November highs.

Source: ProRealTime

[MongiIG]

Gold higher but oil prices retreat

Gold prices are still in a range but have made small gains, while oil prices are under pressure. Video

 

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Tuesday 14 December 2021 

Gold

Prices staged a small recovery over the past two sessions, but a move above $1790 still eludes it.

Should this occur then the bullish view will be strengthened, but otherwise for now the trading range persists.

Source: ProRealTime

WTI

Gains yesterday stalled at $72.75, as they did last week. The price has seen upward momentum cease for now, but for the moment a bearish turn has yet to develop.

Buyers will want to see a move above $72.75 to clear the way towards $74, while sellers will hope that a reversal below the 200-day simple moving average (SMA) can take place.

Source: ProRealTime

[MongiIG]

Gold and oil prices struggle

Oil and gold have both fallen back in early trading.

Source: Bloomberg

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Wednesday 15 December 2021 

Gold

The price has dropped back towards recent support at $1765, so we are once again on watch to see if the price can close below this level and open the way to more downside.

Until then the $1765/$1790 range remains in effect.

Source: ProRealTime

WTI

The price continues to find some support at $67.85, although it has now dropped below the 200-day simple moving average (SMA) at $70.23. A close below $67.85 opens the way to $66 and lower, where the price found a low during the early part of the month.

Having created a lower high at $72.75, the outlook is turning more bearish, so bulls will need a move back above this level to recover some of the uptrend seen this year.

Source: ProRealTime

[MongiIG]

Gold drops back but oil aims for more gains

Gold is unable to make much headway but oil is stabilising after some volatility yesterday.

Source: Bloomberg

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Tuesday 04 January 2022 

Gold

Hopes of additional gains here have been torpedoed for now, after yesterday’s sharp reversal that prompted a bearish crossover in daily stochastics.

For now the price is holding trendline support from mid-December, which might allow room for a bounce in due course, but a move below $1800 would be a bearish development.

Source: ProRealTime

WTI

A broader pullback here appears to have been stopped for now, as the price bounces from the 100-day simple moving average (SMA) at $74.40 and pushes back above the 50-day SMA ($75.50).

Now we look to see further gains above last week’s highs of $77.36 to mark the beginning of a new leg higher. A more bearish view requires a drop below $74.

Source: ProRealTime

[MongiIG]

Brent, silver encounter short-term selling pressure

Both silver and Brent crude have come under pressure in the short-term this morning.

Source: Bloomberg

IG Analyst | Publication date: Wednesday 05 January 2022 

Brent

Yesterday Brent crude oil tried but failed to break through the $79.96/$80.01 resistance area, made up of the early November low and the December high, on a sustainable basis and this morning trades back below it.

This means that while no rise above yesterday’s high at $80.46 is seen, a short-term retracement lower towards the 3 January high at $79.20 may occur today. Further minor support is found at the 7 October low at $78.88.

A rise above $80.46 needs to ensue for the uptrend to be reignited and for the late November high at $82.03 to be revisited.

Source: ProRealTime

Silver

Silver sits between a rock and a hard place, on the one hand capped by its November to January resistance line at $23.07, and on the other sitting above its one-month support line at $22.72.

Having said that, the uptrend, which began in mid-December, should remain firmly intact while the daily chart lows seen since mid-December at $22.68/$22.59 continue to hold.

While this is the case, the December and early January highs at $23.41/$23.43 remain in focus.

Source: ProRealTime

[MongiIG]

Gold hit hard but oil edges higher

Gold prices have dropped below trendline support, but oil is in a more positive mood.

Source: Bloomberg

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Thursday 06 January 2022

Gold

Trendline support from the middle of December has been broken, and with the price having been knocked back yesterday following the Federal Reserve (Fed) minutes (and touching trendline resistance from November too), the sellers seem to have the upper hand.

This fall below $1800 brings the $1765 support zone from November and December into the frame, accompanied by a bearish stochastic crossover that will give further support to the bearish view.

To reverse this outlook we will need to see the price back above $1810 and trendline support, and then push on to break out of trendline resistance and attempt to target the December highs at $1830.

Source: ProRealTime

WTI

The pullback yesterday in the wake of the Federal Open Market Committee (FOMC) minutes merely provided a dip-buying opportunity, unlike in indices where the picture is less clear.

However, expectations of further increases in demand and continued limitations on supply increases mean that the upside case for oil appears intact.

From a price perspective, the continued move higher now has to challenge trendline resistance from October, the line that was touched yesterday, moving on above $78 to stage a breakout.

A more bearish view would have to result from a reversal that takes the price back below $76.

Source: ProRealTime

[MongiIG]

Brent crude flirts with a four-month downtrend line while Gold continues to tumble

Gold prices are still under pressure, while Brent crude is reaching an interesting juncture.

Source: Bloomberg

IG Analyst | Publication date: Friday 07 January 2022

Gold 

Gold's early January slide is fast approaching the 21 December low at $1785, a drop through which will bring the mid-October to December lows at $1762/$1746 into play.

This area represents key support and is likely to hold when first tested. If not, we would have to allow for the $1722 September trough to be reached.

Only a currently unexpected bullish reversal above yesterday’s $1811 high would make us question our bearish outlook. Above it lies the early January peak at $1832 which is key for the medium-term trend. 

Source: ProRealTime

Brent crude

Brent crude oil remains in the ascendance and is trying to break through the October to January downtrend line at $82.06 and reach the early November highs at $84.98/$85.00. 

Previous resistance at $79.96/$80.01, broken through a few days ago, has become support because of inverse polarity and contains the early November low and the December high. While above there, the short-term uptrend looks healthy.

Below $79.96 sits the 3 January high at $79.20 and further minor support at the 7 October low at $78.88. 

Source: ProRealTime

[MongiIG]

Gold and WTI edge higher

Gold and oil are both finding new strength, with the latter recovering from some indecision on Friday.

Source: Bloomberg

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Monday 10 January 2022 

Gold

Gold prices slumped last Thursday but have staged a small recovery, finding support at a new potential trendline.

Having dropped back sharply over the last week the price needs to recover $1805 to provide a more bullish near-term view, which would then put $1830 into view, the high from the end of December.

Alternately a move back below $1780 and the support level found last week would develop a bearish view and put $1765 and lower into view.

Source: ProRealTime

WTI

Gains continue here, as the price recovers from a wobble on Friday. The bullish view remains intact, supported by the recent higher high.

It would take a drop back below $76 to open the way to a bearish view, which could potentially bring $74 into view once again.

Source: ProRealTime

[MongiIG]

Gold and Brent crude oil are on the up again

Gold and oil look bid, with the latter recovering from some indecision on Monday.

Source: Bloomberg

 | Writer, | Publication date: Tuesday 11 January 2022 

Gold fast approaching resistance ahead of US consumer price data 

The price of gold is rising ahead of the publication of US consumer price index data for December and the confirmation hearing for Federal Reserve Chair Jerome H. Powell’s renomination to lead the Federal Reserve (Fed). 

Once resistance at $1814 to $1816, containing the October 26, November and mid-December highs has been bettered, the two-month downtrend line at $1824 should be back on the map.

Above it lies the early January peak at $1832 which is key for the medium-term trend.  Support is seen around the minor psychological $1800 mark. 

Source: ProRealTime

Brent stabilises above the $80 mark 

Brent crude oil’s uptrend remains intact despite yesterday’s sell-off since a series of higher highs and higher lows can still be seen, the latter coming in at yesterday’s $80.28 low.  While $80.28 and the psychological $80 mark continue to underpin, the oil price should be gunning for yesterday’s high at $82.02. 

Further up more significant resistance can be found between the October to January resistance line at $82.62 and the early January peak at $82.77. If overcome, the early November highs at $84.98 to $85.00 would be back in the picture. 

Source: ProRealTime

[MongiIG]

Gold and oil both look for further gains

Yesterday’s gains have put further strength into the bounce in crude oil and gold.

Source: Bloomberg

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Wednesday 12 January 2022 

Gold

Yesterday’s sharp move higher confirms the more bullish view that developed here earlier in the week. Further gains continue to target $1830 and higher, with a higher high above $1830 providing further reinforcement of the uptrend.

An intraday dip that holds above $1800 should continue to see further inflows, with a more bearish view requiring a drop below $1800.

Source: ProRealTime

WTI

Gains here yesterday have put new life into the uptrend, putting a move back towards $83 into view. From here further gains would create a new higher high and reinforce the longer-term uptrend.

Price action continues to favour the buyers, with no sign of a reversal yet. Such a development would require a move back below $78 at the least.

Source: ProRealTime

[MongiIG]

Gold’s rise slows, but oil still on the up

After days of gains gold has hit resistance, while oil prices remain firmly bullish. Video

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Thursday 13 January 2022 

Gold

After four days of gains the price has stalled, falling back from the $1830 area once again.

We look for a move above $1830 to provide a renewed bullish view, although it will take a move back below the $1780 low from the end of last week to suggest that a much more bearish move is in play.

Source: ProRealTime

Brent

The price continues to see further bullish moves, remaining solidly in an uptrend.

Dips as we saw into Tuesday’s session found buyers, with the run of higher highs and higher lows still firmly in place.

Source: ProRealTime

[MongiIG]

Gold stuck below resistance while Brent trades near October peak

Gold is stuck below resistance while Brent crude oil is close to its October peak ahead of US retail sales and consumer confidence data. Video

IG Analyst | Publication date: Friday 14 January 2022 

Gold

Gold is still trying to reach its early January high at $1832 but so far to no avail.  The price of the yellow metal seems to be waiting for further impetus which may arrive once the December US retail sales report and the January University of Michigan consumer confidence survey have been published later today. 

While $1832 caps, a slide back towards the mid-December high at $1814 may ensue. Further down meander the 55-day simple moving average (SMA) at $1807 and also the 200-day SMA at $1802.

Only a break above the $1832 early January peak would confirm that the December-to-January uptrend remains intact with the November high at $1877 remaining in the pipeline. 

Source: ProRealTime

Brent on track to reach October peak 

Brent crude oil’s ascent has taken it to within a whisker of the $85.85 October peak, a rise above which would put the June 2012 low at $89.04 in its sights. 

The price of oil is underpinned by support found between the $82.77 early January high and the two-month uptrend line at $82.62. 

Medium-term upside pressure should prevail while the next lower $80.28 to $80.00 10 January low and psychological support hold. 

Source: ProRealTime

[MongiIG]

Gold prices edge up as WTI reaches October high

Gold and oil have made headway to the upside this morning, with oil in particular back at the highs from October 2021.

Source: Bloomberg

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Monday 17 January 2022 

Gold

After easing back during the second half of last week, the price is moving higher once again. Losses during the week were stalled around $1815, providing an area of support that could see a new push back towards $1830. A close above this level would mark a fresh bullish development.

From here gains would target $1863-$1875, where the bounce stalled in November. A more bearish view would need to push back below $1800, although even this might leave it above trendline support from the December low.

Source: ProRealTime

WTI

Further strong gains on Friday have brought the price back to the October highs at $84. As yet there are no real signs of any bearish price action, and instead the outlook seems to point towards further gains.

A reversal back below $80 would be viewed as a more short-term bearish move, within the context of a much wider uptrend.

Source: ProRealTime

[MongiIG]

Gold under pressure while Brent gunning for $89.04 to $89.46 zone

Gold drops back towards the $1800 region while Brent oil hits 7-year highs. Video

IG Analyst | Publication date: Tuesday 18 January 2022

Gold falls back

The price of gold is pointing down again, having traded sideways over the past week, with the 55- and 200-day simple moving averages (SMA) at $1804.60 to $1800.60 being eyed.

Immediate downside pressure should be maintained while the precious metal stays below yesterday’s $1823 high. Only a currently unexpected rise above the next higher $1829 to $1832 early and mid-January highs would put the November high at $1877 back in play.

Source: ProRealTime

Brent hits 7-year high

The price of Brent crude oil has surged more than 13% since the start of the year amid concerns over tightness in the oil market.

It is now trading at seven-year highs and has the May 2010 high to October 2014 low resistance zone at $89.04 to $89.46 in its sights. Slightly further up lies minor psychological resistance at $90.00.

Immediate support comes in around the $85.85 October peak and at yesterday’s low at $85.14. While the latter level underpins, the two-month uptrend remains firmly in control.

Source: ProRealTime

[MongiIG]

Silver and Brent crude oil continue to surge higher

Silver is aiming for the $24.19 to $24.22 target area and Brent crude for the $90.00 region.

Source: Bloomberg

 | Writer, | Publication date: Wednesday 19 January 2022 

Silver trading 6-week highs, targeting $24.19 to $24.22 region

The silver price continues its advance as a safe haven investment in the wake of risk-off sentiment amidst surging US yields.

It is currently trading at levels last seen in late November and a rise above the 26 November high at $23.73 should push the 200-day simple moving average (SMA) and also the 2021-to-2022 downtrend line at $24.19 to $24.22 to the fore. There the precious metal is likely to stall, at least in the short-term.

Potential intraday slips should find support around last week’s high at $23.31. The current uptrend, which began on 7 January, will stay valid while silver remains above this week’s low at $22.81.

Source: ProRealTime

Brent crude oil scales 7-year highs on supply woes

Brent crude oil’s advance has so far taken it to a multi-year high of $88.53 after a pipeline running from Iraq to Turkey was hit by an explosion, before consolidating short-term.

The May 2010 peak and October 2014 low at $89.04 to $89.46 continue to be in focus, though. Slightly further up lies minor psychological resistance at $90.00.

Immediate support comes in between Monday’s $86.25 high and the $85.85 October peak. Further minor support sits between the two-month uptrend line and the 17 January low at $85.20 to $85.14. While this support zone underpins the buyers remain firmly in control.

Source: ProRealTime

 

[MongiIG]

Gold looks for gains after surge, while oil prices consolidate

Gold’s bounce on Wednesday puts it in a strong position, while oil prices are still looking for more upside.

Source: Bloomberg

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Thursday 20 January 2022 

Gold

The uptrend has been given new life with yesterday’s bounce, which has seen the price push to $1840 for the first time in a month. This run of higher highs and higher lows continues to support a more bullish view, putting the November highs near $1860 into view.

Tuesday’s low at $1806 would need to be breached to the downside to provide a short-term negative outlook, as this would end the run of higher lows witnessed over the past seven weeks.

Source: ProRealTime

WTI

The rally goes on here, and has taken the price to fresh highs this week, although Wednesday’s session saw WTI drop back below $86. Nonetheless the overall bullish view remains in place, and the 2011 highs above $100 per barrel are now in sight.

Near-term support comes into play around $84, the October and November highs, and then below this in the region around $79.

Source: ProRealTime

[MongiIG]

Gold and silver rally taking a breather

Precious metals such as gold and silver have further to run in wake of rising inflation expectations.

Source: Bloomberg

IG Analyst | Publication date: Friday 21 January 2022 

Gold rally on hold

Gold's rally is taking a short-term break, having sliced through the November-to-January resistance line and risen above the early January high at $1832 earlier in the week. Together with last week’s high at $1829 it is offering short-term support.

Further down the breached three-month resistance line comes in at $1824. While above $1824, further upside remains in the pipeline with the November peak at $1877 representing a possible upside target.

Source: ProRealTime

Silver rally remains healthy

The silver rally is ongoing, albeit at a slightly slower pace, in the wake of rising inflation expectations.

It is currently trading at levels last seen in late November, above the 200-day simple moving average (SMA) and also the 2021 to 2022 downtrend line at $24.18 to $24.16 which today offer support.

The September and 22 November highs at $24.87 to $24.89 are currently being eyed, a move above which would lead to the $25.40 November peak being in focus.

Source: ProRealTime

[MongiIG]

Gold and oil still making headway

Gold and oil are both preparing to move higher, after recovering from some indecision last week.

Source: Bloomberg

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Monday 24 January 2022 

Gold

The gold price spent the past two sessions consolidating after its mid-week gains, but the higher high is still intact. A renewed push higher brings $1860 into view, and then on to $1875.

Having cleared trendline resistance from the November high, the next line to watch comes in around $1850, marking trendline resistance from the May peak.

Source: ProRealTime

WTI

Friday’s session saw the oil price recover from its lows, finding support around $84. Early gains this morning point towards fresh bullish strength, targeting $86 and then $87.02.

Having rebounded on Friday the price has negated any short-term bearish view, although a drop back below $82.72 would mark a reversal in the near-term.

Source: ProRealTime

[MongiIG]

Gold and oil look healthy amidst global risk-off sentiment

Gold and Brent crude oil are both likely to move higher, provided that yesterday’s lows underpin.

Source: Bloomberg

IG Analyst | Publication date: Tuesday 25 January 2022 

Gold rally likely to continue while above $1829

Following last week’s surge to $1848, gold's rally took a breather until yesterday when it resumed its ascent.

The current January high at $1848 is thus back in the frame, a rise above which would open the way for the November peak at $1877 to be reached next. This bullish view will remain valid as long as the price of gold stays above the 14 January high and 21 January low at $1829.

Only a slip through $1829 would neutralise the current bullish outlook and put the intersection point of the January support line and the breached three-month resistance line at $1821 on the cards.

Source: ProRealTime

Brent in short-term consolidation mode but remains bullish overall

Brent crude oil’s advance has so far taken it to a multi-year high of $88.92 on supply concerns before consolidating below this level since last week.

Immediate support sits between the 17 and 21 January lows at $85.17 to $85.14 while further minor support can be found between the two-month uptrend line and yesterday’s low at $84.76 to $84.36. While the latter support zone underpins, buyers should remain in control.

A rise above yesterday’s high at $88.23 and the slightly higher year-to-date high at $88.92 would free the way to reach the May 2010 peak and October 2014 low at $89.04 to $89.46. Slightly further up lies minor psychological resistance at $90.00.

Source: ProRealTime

[MongiIG]

Gold and oil head higher once again

Further gains in commodities have taken place ahead of the FOMC meeting tonight, though some volatility is to be expected around the decision. Video

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Wednesday 26 January 2022 

Gold

Fresh gains over the past two days leave the price on course to retake $1860 and higher.

The steady uptrend of December and early January appears to be giving way to a stronger move. In the event of a reversal, we watch for a pullback towards $1830 and then $1807 as possible support.

Source: ProRealTime

WTI

After bouncing from trendline support earlier in the week the price has now begun to push above short-term trendline resistance from the mid-January highs. $86.80 is the next short-term level to watch for a break above previous highs.

A reversal would bring trendline support back into play, and then on to $82. A broader retracement requires a drop below $82.

Source: ProRealTime

[MongiIG]

Gold falls but oil keeps on rising

While gold prices have fallen following the Fed meeting, oil prices continue to make headway.

Source: Bloomberg

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Thursday 27 January 2022 

Gold

The continued bounce in gold has come under pressure with a reversal towards trendline support in the wake of the Federal Reserve (Fed) meeting.

If trendline support is broken then we look towards $1790 as a possible area of support, and then on towards $1765.

A bounce from the trendline could yet see the price resume its move higher, back towards $1850.

Source: ProRealTime

WTI

There is no sign of an end to the crude oil rally, even as other assets falter in the wake of the Fed meeting.

Yesterday’s breakout from trendline resistance hands the advantage back to the buyers, and the longer-term view brings the 2014 highs above $100 into view.

Source: ProRealTime

[MongiIG]

Brent encounters month end profit-taking while gold plummets

Brent crude oil’s seventh weekly gain encounters resistance, while gold falls out of bed.

Source: Bloomberg

IG Analyst | Publication date: Friday 28 January 2022

Brent stalls within the $89.04 to $90.00 resistance area

Brent crude oil remains on track for its seventh weekly gain, having so far reached a seven-year high at $89.83 as supply tightness keeps oil prices elevated.

However, technically speaking the oil price is seen struggling within a long-term resistance area. It encompasses the May 2010 peak and October 2014 low at $89.04 to $89.46 as well as minor psychological resistance at $90.00.

Since this week’s high has furthermore been accompanied by negative divergence on the daily RSI, some profit-taking into month end seems probable.

Support below yesterday’s low at $87.90 can be found between the two-month tentative uptrend line at $86.44 and the $85.85 October peak.

Source: ProRealTime

Gold’s drop out of bear flag formation eyes $1759 to $1753 region

Following this week’s surge to a two-month high at $1854 on the back of rapidly declining equity markets, the price of gold has been in free fall ever since equities stabilised.

Yesterday’s slip out of its two-month bear flag formation puts the November and December lows at $1759 to $1753 firmly back into the frame.

On the way down sits the early January low at $1783. Immediate bearish pressure is to be maintained while the 55-day simple moving average (SMA) and 18 January low at $1803 to $1806 cap.

Further minor resistance consists of the 22 October, 26 November and 17 December highs at $1814 to $1816.

Source: ProRealTime

[MongiIG]

Gold’s decline slows while oil prices hold steady

Gold prices remain under pressure after falling sharply last week, but oil is still holding above previous higher highs.

Source: Bloomberg

 Chris Beauchamp | Chief Market Analyst, London | Publication date: Monday 31 January 2022 

Gold

The loss of trendline support on Thursday was followed up with further losses for gold on Friday. However, support around $1787 has prevented any further downside for now.

If buyers are able to move the price back above $1800 then a more short-term bullish view emerges, although a move back above trendline support from the December low would bolster this. Further declines below $1780 bring $1765 into view.

Source: ProRealTime

WTI

Having broken out of the triangle formation last week the price is back on an upward path.

The longer-term view supports a continuation of gains that will push the price on towards $90. Longer-term upside targets lie above $100, not seen since 2014.

After the recovery from below $84 last week, the sellers will need to drive the price back below this level to reverse some of the overall bearish view.

Source: ProRealTime

[MongiIG]

Brent crude oil encounters resistance while gold finds support

Following its sixth weekly gain Brent crude oil encounters resistance but old holds above support.

Source: Bloomberg

IG Analyst | Publication date: Tuesday 01 February 2022 

Brent beginning to form a wedge - caution

Brent crude oil has so far reached a seven-year high at $90.33 as supply tightness keeps oil prices elevated. The oil price may consolidate this week, however, having risen for six consecutive weeks and hitting minor psychological resistance at $90.00.

The reason behind this view is that last week’s high has been accompanied by negative divergence on the daily RSI and because a wedge formation can be made out on the daily chart, both pointing to potential profit taking.

Having said that, while yesterday’s low at $88.00 underpins, upside pressure should remain dominant. Only a slip through the two-month tentative uptrend line at $88.10 and this week’s low at $88.00 would push the $85.85 October peak back to the fore.

Source: ProRealTime

Gold finds interim support but overall remains under pressure

Last week’s sharp drop from its two-month high at $1854 has taken the price of [commodities:GC|Goldgold to this week’s low at $1780 before recovering to the intersection point of the 200- and 55-day simple moving averages (SMA) at $1806.

The next higher October, late November and mid-December highs at $1814 to $1816 represent a short-term upside target. While the early to mid-January highs at $1828 to $1832 cap, however, the bears should remain in control.

A tumble through the late December to January lows at $1785 to $1780 would put the November and December lows at $1759 to $1753 back on the map.

Source: ProRealTime

[MongiIG]

WTI’s ascent paused ahead of OPEC+ while gold stays sidelined

WTI muted ahead of OPEC+ and on the back of sixth weekly gain while Gold remains capped.

Source: Bloomberg

IG Analyst | Publication date: Wednesday 02 February 2022 

Negative RSI divergence seen on daily WTI chart ahead of OPEC+

WTI has so far risen to a seven-year high at $88.35 amidst geopolitical tensions and tight global supplies, and ahead of the highly anticipated OPEC+ meeting today.

Having risen six straight weeks, it wouldn’t come as a surprise if the oil price were to consolidate this week. Technically speaking three factors point to a possible retracement lower soon being seen:

• last week’s high at $88.35 has been accompanied by negative divergence on the daily RSI;
• a wedge formation can be made out on the daily chart;
• several Dojis, where the open and close are near one another, can be spotted on the daily candlestick chart. These denote indecision and when clustered together often form consolidation patterns and sometimes tops.

Only a slip through the two-month tentative uptrend line at $86.34 and, more importantly, this week’s low at $85.76 would put the $85.06 October peak back on the cards. A rise above the current January high at $88.35 would have the psychological $90 mark in its sights.

Source: ProRealTime

Gold capped by the 55- and 200-day simple moving averages

Gold's recovery from this week’s low at $1780 seems to have been short-lived with the 200- and 55-day simple moving averages (SMA) around $1806 acting as resistance with the October, late November and mid-December highs at $1814 to $1816.

 

While the early to mid-January highs at $1828 to $1832 cap, a bearish bias will remain in play.

A drop through the late December to January lows at $1785 to $1780 would lead to the November and December lows at $1759 to $1753 being eyed.

Source: ProRealTime