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Levels to watch: gold, silver and crude

The end of the week is seeing some modest buying in commodities after a torrid week for the asset class.

Oil can
Source: Bloomberg

Next week is a lot busier in macro terms, which may well help keep the pressure off commodities in the short-term, but overall we are expecting further downside.

Gold could target $1195

The metal finds itself in an increasingly tight range, progress to the upside having stalled below $1220. Two attempts this week to break the 200-hour moving average have failed, so the target now remains $1209, the low point from 25 September. A drop through here targets $1195. Any bounce above $1220 carries us back towards $1240.

Silver could reach $15.90

A 20 cent trading range between $17.40-$17.80 means that silver traders are having to employ nimble footwork. A drop below $17.40 could, on a weekly chart, clear the way to $15.90, levels not seen since 2009.

Brent could touch 200-H MA

Once again Brent finds itself pushing towards the 200-hour MA, but the last attempt earlier in the month was not particularly successful. Any breach of this $97.70 level would point towards $99 and then $99.50. On the downside we are looking towards $96.50 and then $95.80.

WTI finds support at $91

US light crude is struggling to hold $93, but even a close above here would still leave the $93.50 level as resistance as well. A breach here targets $95, while the zone around $91 is acting as support. A rising 50-hour MA means that buyers will feel more emboldened, even if the intraday relative strength index is heading towards overbought territory. 

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