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.
Silver in $30 range
With the gap up from the Friday close now filled, the bounceback in risky assets today means the $17.70 level remains the barrier to upside for silver. With the metal price stuck in a tight $30 range, it’s worth keeping an eye on any moves through the 100-period MA on the four-hour chart. We have now had four unsuccessful attempts at breaching this metric. A move through here could see the bearish channel from the $21.50 July highs broken, and puts the $18 marker in sight.
Presently the uptrend from the $16.70 lows on the H1 chart remains intact, with the rising support coinciding with the 100H MA.
A pull back through the $17.20 level sees a return to $17.06 then $16.70.
Gold find support around $1225
Gold prices remain capped by the $1240, although some support is being found at the 50 H MA around $1225 – this coincides with the rising trend line support from the lows of $1180/oz.
The daily chart is reminiscent of the action seen following the all-time highs of $1900/oz all the way back in 2011. Back then, we saw a succession of lower highs with a base around $1530/40 per oz.
This time looks similar but with the $1180 marker keeping the bears at bay for now and the bias would be to remain above these levels as market uncertainty takes hold. A close through $1237 would put the metal on a move towards the 50-daily moving average at $1253. The overall target is $1280.
Any move back through $1215/oz puts gold back on a trip towards the lows.
Oil eyes potential double bottom
Oil prices have found a base at $88.40/bbl for the time being. We may yet see the gap down from the Friday close filled – this is currently just above the $90/bbl level, before a resumption of the move down.
There is a potential double bottom to watch for on the hourly chart with the neckline coming in at $90.81 – together, this resistance and the confluence of the 100H MA mean that any move through would be tipped for a move back, and would be expected to test the 200H MA at $92.05.
A move back through $88.40 (daily close) puts the $86.20 level in sight.