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Gold could target $1200
Although it has faltered around the 14-day EMA ($1184), there is still reason to expect fresh upside. Daily stochastics remain bullish, and so once the hourly stochastic turns higher and gives a bullish crossover, we can expect the metal to bounce. A first target is still $1190, and then to $1200.
The price has yet to seriously test the 200-hour SMA at $1182, but only a move back to $1175 would imperil the bullish outlook.
Silver eyes $16.20
Silver’s downside move is not over yet it seems, with a drop through $16 suggesting there is more to come. Fresh downside targets now lie in the direction of $15.60.
A bounce needs to clear yesterday’s high of $16.20, ideally coupled with a bullish crossover in daily stochastics to suggest a fresh move to the upside.
Brent could move back to 50-hour SMA
A steady rally in recent days reinforces the idea that we will see the price move back in the direction of the May high at $70. Thus we look to ‘buy on the dips’, with a move back to the 50-hour SMA at $65.60 being one possible entry point.
We have yet to have a fully oversold reading on daily stochastics however, so until that occurs in brent I would stand aside.
WTI could target early May high
The mark of $61.50 is providing some resistance, with the price at the top end of the trading range that has dominated for the past six weeks. A break above here would target the early May high $62.70 for WTI.
Support could be found at the rising 50-hour SMA at $60.65, with a bigger move lower testing the 200-hour MA at $59.69.