Gold prices hits resistance, while WTI price grinds higher
Gold shows signs of potential weakness at trendline resistance, while US crude continues to grind higher within consolidation phase.
Gold rallies into trendline resistance
Gold has been on the rise after the recent retracement into the 76.4% Fibonacci retracement level at $1692. That rise could start to come under pressure from here though, with trendline resistance bringing some early selling pressure. The stochastic is also turning lower once more, with a break below the 80 level looking highly likely.
The past four occasions we have seen such a breakdown out of overbought territory, the price of gold has seen sharp losses. The wider outlook still remains bullish, yet it does look likely we will see a move lower over the short term. We would need to see a break through $1723 to signal an end to this recent period of consolidation.
WTI consolidation continues as we await breakout
WTI has been grinding higher over the past week, with markets keeping a keen eye out for whether we see a sharp decline in the lead up to Monday's June contract-end. With crude inventories falling yesterday, markets have seen some sign of hope that we are reaching a point of equilibrium given production cuts and rising demand.
However, with plenty of oil sloshing around at sea and on, with oversupply still an issue. Ultimately, we need to see a break through either $27.39 or $23.91 to bring a wider bias into play. In the meantime, this short-term ascending channel looks set to continue.
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