Oil crashes again, gold and silver both suffer
Traders continue to hold heavy to extreme long bias in all three.
Gold Technical analysis, overview, strategies, and levels
With its price recovering off of the lows yesterday, we finally got some pivot point action that aided conformist buy-on-reversal strategies, and kept its technical overview of a stalling bull trend intact, even if it finished the session lower as equities also declined, and the US dollar outperformed in the FX market. From a technical standpoint, its price is still above all its main moving averages, its ADX (Average Directional Index) showing an ongoing propensity to trend, and its RSI (Relative Strength Index) in overbought territory.
IG client* and CoT sentiment for Gold
In sentiment, retail traders continue to hold a heavy long bias, raising it a notch to 72%.
Gold chart with retail and institutional sentiment
Silver Technical analysis, overview, strategies, and levels
There's little left at this stage to shift silver's technical overview from a stalling bull trend whose bull trend channel has broken to a more consolidatory overview, even if the long-term charts still point to potential larger moves ahead, and where fundamentals remain less certain. And while gold also suffered, silver underperformed in comparison, taking its price breaking beneath yesterday's 1st Support level and just at its 2nd Support level before partially retracing back up for the session. For the gold/silver ratio, it has risen back up to the 113s as of this morning.
IG client* and CoT sentiment for Silver
Silver chart with retail and institutional sentiment
Oil Technical analysis, overview, strategies, and levels
After Monday's rout, oil prices were in for another plummet yesterday, plunging past key support levels and aiding conformist breakout strategies befitting its current volatile technical overview on both the weekly long-term and daily short-term figures. The fear at this stage is the lack of longs rolling over into the June contract, and from a fundamental standpoint even if lockdown restrictions ease, it'll take far more to consume the amount of oil being produced especially as the OPEC+ output cut isn't even in effect yet. API (American Petroleum Institute) posted another big surplus at 13.2m, and EIA (Energy Information Administration) is up next expected to show an even larger figure. In oil news, the US ordered Chevron to ‘wind down’ its Venezuela operations by December, and following news it was considering halting Saudi imports.
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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