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CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Precious metals retrace off the lows while oil registers a drop

Dented trade hopes aid safe haven products like gold while slower demand and a sizeable EIA surplus forces oil prices into slight retreat.

Gold Source: Bloomberg

Gold Technical analysis, overview, strategies, and levels

Safe haven products like gold, bonds, and the yen enjoyed slight retracement yesterday on dented trade deal hopes, and that ensured that the precious metal’s price managed to rise off of its short-term support level, but where a negative DMI (Directional Movement Index) cross occurred.

Current Technical Overview Consolidation - At Short-Term Support
Technical Overview Conformist Strategies Sell 1st Resistance After Reversal, Buy 1st Support At/Before price
Technical Overview Contrarian Strategies Buy 1st Resistance Upon Breakout From Below, Sell 1st Support Upon Breakout From Above
S/L for 2nd Resistance 1517.7
2nd Resistance 1512.2
S/L for 1st Resistance 1506.7
1st Resistance 1501.3
Relative Starting Point 1490.3
1st Support 1479.4
S/L for 1st Support 1473.9
2nd Support 1468.5
S/L for 2nd Support 1463.0

IG client and CoT sentiment for Gold

That has helped retail longs – plenty of whom initiated on Tuesday’s price drop – into taking profit on fresher longs initiated at the lows, with the bias dropping 3% but still at heavy long territories at 76%.

Gold sentiment Source: IG charts
Gold sentiment Source: IG charts

Gold chart with retail and institutional sentiment

Gold Source: IG charts
Gold Source: IG charts

Silver Technical analysis, overview, strategies, and levels

As with gold, a negative DMI cross has occurred here as well, with its short-term ranges roughly holding for the time being and keeping its current technical overview in a consolidatory state where the bulk of its main technical indicators are directionless, but where its price is below all its main short-term moving averages.

Current Technical Overview Consolidation
Technical Overview Conformist Strategies Sell 1st Resistance After Reversal, Buy 1st Support After Reversal
Technical Overview Contrarian Strategies Buy 1st Support After Reversal, Sell 1st Resistance Upon Breakout From Above
S/L for 2nd Resistance 18.19
2nd Resistance 18.08
S/L for 1st Resistance 17.96
1st Resistance 17.85
Relative Starting Point 17.62
1st Support 17.39
S/L for 1st Support 17.28
2nd Support 17.16
S/L for 2nd Support 17.05

IG client and CoT sentiment for Silver

Retail extreme long bias remains just that, rising to a staggering 90% as the pair’s price didn’t offer price gains as it did in gold, and hence not giving longs a chance to take profit just yet.

Silver sentiment Source: IG charts
Silver sentiment Source: IG charts

Silver chart with retail and institutional sentiment

Silver Source: IG charts
Silver Source: IG charts

Oil WTI Technical analysis, overview, strategies, and levels

Leave it to a larger than expected EIA (Energy Information Administration) surplus of 7.9M that was well above expectations as well as API’s (American Petroleum Institute) estimate of only 4.26M to send oil prices retracing off the highs and failing to allow the energy commodity’s price in successfully closing above the 200-day moving average for the third day running. Despite the retracement the technical overview is still showing a touch of short-term positive technical bias, and where most of its main technical indicators are flashing green.

Current Technical Overview Consolidation - Positive Bias
Technical Overview Conformist Strategies Sell 1st Resistance After Reversal, Buy 1st Support Af/Before Reversal
Technical Overview Contrarian Strategies Buy 1st Resistance Upon Breakout From Below, Sell 1st Support Upon Breakout From Above
S/L for 2nd Resistance 58.84
2nd Resistance 58.34
S/L for 1st Resistance 57.83
1st Resistance 57.33
Relative Starting Point 56.33
1st Support 55.33
S/L for 1st Support 54.83
2nd Support 54.32
S/L for 2nd Support 53.82

IG client and CoT sentiment for Oil WTI

Oil sentiment Source: IG charts
Oil sentiment Source: IG charts

Oil chart with retail and institutional sentiment

Oil Source: IG charts
Oil Source: IG charts
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This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

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