The information 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 Bank S.A. 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 and as such is considered to be a marketing communication.
50-DMA supporting Gold
Those with a long-term view will be watching the weekly chart on gold, where the 20-week moving average is about to cross below the 50-week once again, ending gold’s brief bounce. Weekly stochastics are witnessing a rolling over as well, putting the emphasis to the downside.
On the daily chart the drop through $1300 means that the 50-day moving average at $1294 and then the 200-DMA at $1286 become support, while $1307 becomes resistance.
The daily relative strength index is declining as well, and while there is no close above the 20-DMA the view for gold remains bearish.
Silver outlook negative
Although holding above yesterday’s lows, the silver outlook appears negative as well.
The hourly chart shows a steady decline, and while yesterday’s low of $20.50 could provide some buying the fact that the intraday RSI is still not oversold means more downside is likely, possibly testing the low from 24-25 July around $20.30.
As I have noted before, the best hope lies in the ‘golden cross’ of the 50-DMA above the 200-DMA, which still seems on course to take place. In the meantime, the upside target remains $21.
Brent still stuck between $107-$108
The observations made yesterday still apply, namely that Brent finds itself stuck between $107 and $108, with the declining 20-DMA still containing any moves to the upside.
The daily RSI may be edging higher, slowly, but at least stochastics show a steady rise, which might incline some brave souls to the long side.
NYMEX situation unclear
NYMEX seems to be bouncing off its long-term trend this morning, even if the 20-DMA has crossed below the 100-DMA for the first time since February.
The daily RSI has risen slightly, but not enough to inspire confidence. Until we see a close above the 100-DMA at $102.33 the situation remains unclear.