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Levels to watch: gold, silver and crude

The overnight bounce in precious metals is already fading, while oil prices have dropped as markets react to the situation in Greece. 

Oil pipeway
Source: Bloomberg

Gold could reach month low

The metal started off higher overnight but since then has continued to lose ground, moving back into the price range seen on Friday. If it manages a close above $1180 then I may be inclined to a more optimistic appraisal of the situation.

However, for the moment, bounces still look to be sold, with a move through $1170 targeting the low of the month around $1165.

Silver eyes $16.20

Silver has also struggled to hold its overnight gains, but so long as $15.80 holds there is the potential for another move in the direction of $16.20. A break through this level would then head towards the 50-day simple moving average at $16.40.

A turn higher in the daily relative strength index, combined with still-bullish stochastics, points towards the idea that dips are still to be bought.

Brent could turn towards early April lows

The price for Brent has come to rest on the 100-day SMA ($61.60), returning to this level for the first time since mid-April. The steady turn lower of the past week has accelerated in recent days, and if we lose the 100-day SMA then I would be looking for a more sustained sell off that pushes us in the direction of $55, the lows of early April.

WTI could test $57.10

Having dropped below the 50-day SMA ($59.38) today, and with momentum indicators on the daily chart still firmly bearish, I would be looking for a test of the $57.10 area.

A break below here for WTI would target the 100-day SMA at $54.85, while the 200-day SMA at $61.20 should cap any upside for the time being.

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