Gold gets the attention on fresh highs, oil oscillates
Federal Reserve minutes and manufacturing PMIs out of the US, while EIA’s estimate closely watched by oil traders.
Gold Technical analysis, overview, strategies, and levels
Gold prices have been taking much of the attention as of late, its price breaching the $1780s yesterday and briefly crossing above yesterday's 1st Resistance level before partially retracing off the highs, making contrarian reversals briefly the outperforming strategy at the expense of breakouts as upside movement continues to remain limiting and at risk of partial pullbacks. Talk of record high prices, both technical and fundamental bullish factors, a brief glance at its main technical boxes, and it’s very tempting to label its overview a bull trend. However, we've been here before, and while reversals off the highs have been the outperforming strategy as of late, an eventual big uptick in volatility can't be ruled out, and where pivot points breaks in either direction are likely to be the conforming strategy, especially in the event a downside squeeze on long positions. Those unwilling to consider pivot point play at first levels can consider second levels instead.
IG client* and CoT sentiment for Gold
Gold chart with retail and institutional sentiment
Oil Technical analysis, overview, strategies, and levels
Oil prices remained within its key pivot points yesterday not offering much of a play, and in turn leaving traders to turn into today's items instead. In oil data, API's (American Petroleum Institute) oil inventories reading for the US showed a massive drawdown of about 8.2m, with EIA's (Energy Information Administration) more encompassing estimate expected to show a smaller deficit later today. Coronavirus cases and concerns have failed to subside, with reopening facing more restrictions domestically and in terms of travel, and keeping appetite for the energy commodity limited. That in turn will require OPEC+ commitments extended further into the future, the absence of which would test the energy commodity's price, or at the very least entice contrarian sell reversal strategies off of any significant fresh highs at risk of an eventual reversal.
IG client* and CoT sentiment for Oil WTI
Oil WTI chart with retail and institutional sentiment
*The percentage of IG client accounts with positions in this market that are currently long or short. Calculated to the nearest 1%, as of today morning 8am.
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