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Gold in search of downside support
Gold prices are currently down -0.13% and traded at $1,192.6 during today’s London open. With a light economic data calendar it is likely to result in a rangebound trading day for the metal. However, gold prices are currently trading around the intermediate support level at $1,192.2 – which, if held, could see a resumption of the previous bullish trend with a retest of $1,197.1. However, should a close be seen sub-$1,192.2 then the next clear level of resistance is likely to manifest itself at $1,186.
Silver still lacking direction
Silver prices continue to trade in a large range between $15.53 and $16.22; both of which remain intermediate support/resistance ranges that are likely to keep traders on the sidelines before a break of either level is seen. A full close above $16.22 will likely see a retest of $16.64, a move which is currently supported by a reading of 52 in silver's relative strength index (RSI). If price action fails to penetrate said level then a retest of downside support at $15.53 is once again likely to be brought into play.
Brent aiming to end consolidation period
Brent prices appear to be unfolding in a descending triangle pattern which, when completed, could result in a fresh multi-year low from its current level of $59.93 despite rallying, in the short term, off a low of $59.24 (December 26). A near-term bullish trend could continue, but traders should remain flexible in assessing topside targets as the final push higher in a descending triangle, while pointing to a possible retest of $61.30, usually sees a last gasp attempt from bulls before reversing lower, which in this case could point to a possible downside target of $57.67.
WTI targets further upside
A similar story to Brent is being seen in WTI price action, with the latter stages of long-term consolidation appearing to come to an end. WTI is currently trading at $55.22, marginally above the intermediate support level of $53.96, and if held could signal a move higher to the next clear area of near-term topside resistance at $57.
However, with an RSI reading of 42, it is likely that a test of the aforementioned downside support is likely to come first. If a close sub-$53.96 is seen then the next key level to come in to play will be at $53.75.