Precious metal bullish technicals tested in recent retracement, oil rises
Gold’s daily outlook volatile but lacking direction as daily technicals either neutral or conflicting.
GOLD: Technical overview shift as price breaks through its short-term support level
As its weekly bull trend technical overview stalls heavily at the highs, on the daily chart its been a shift to a more consolidatory but volatile outlook, whereby breakout strategies in either direction can be entertained while those anticipating retracement can consider contrarian reversals. Overall, more and more of its indicators are turning neutral, and those that aren’t are conflicting with its price still above all its main long-term moving averages but below all its short-term moving averages. Retail bias is heavy long at 68% and unchanged since yesterday, with few adding on the price drop.
SILVER: Bull trend on the daily gets tested severely as short-term support fails to hold
As with gold, its short-term support level failed to hold, with what was an accelerated bull trend gets undone by significant volatility in the opposite direction. As it stands its still a bull trend on the daily for this pair’s technical overview but tested heavily as more of its indicators shift back to neutral on the daily outlook. More will be needed to undo its bull trend, though with volatility breakouts in either direction may be more ideal than fading strategies that could get stopped out more easily, even if to the buy side.
OIL – US CRUDE: A breach in its bear trend channel infuses more positive technical bias
Oil prices finished higher yesterday, with the new Saudi Energy Minister saying OPEC+ was here for the long-term, and that ‘no radical’ change was in store in terms of strategy for one of the world’s largest oil producers. That was a sigh of relief for energy markets that combined with stalling US oil production (despite its pipeline network expanding) and a lack of risk-off theme in the markets took the energy commodity toward a higher finish above the last of its main moving averages, the 100-day MA. Whether or not these gains can be sustained is yet to be seen, with a non-trending ADX and its 50-day MA crossing below its 200-day MA in the background. In terms of sentiment, retail bias has shifted to majority short as longs get enticed into taking profit.
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