Gold targets 50-DMA
Gold's bounce from sub-$1200 will have caught out more than a few, but $1240 should be a big resistance level for any upward progress. A close above here still targets the 50-day moving average at $1254 and while the daily relative strength index has pulled back slightly this morning there could be additional momentum.
Ultimately the $1286 level around the 200-DMA will be a make-or-break moment, with any close through here opening a way back towards the $1330 and $1350 areas.
Silver eyes $18.20
For silver however it looks like the 20-DMA is still fulfilling its traditional role of stunting long-term gains. The level $17.50 should be resistance for the time being, with a close through here pointing towards $17.70.
As noted before, the 100-period moving average on the four-hour chart has been a significant hurdle, although today’s move through this would mean that the 200-period becomes the next target, around $18.20.
Brent could find support at $87.80
The continued slump below $90 means that Brent is pressing into territory not seen since the end of 2010 and the dawn of 2011.
Support may be found around $87.80, and then on to $86.20 if this is broken. Meanwhile those with an eye on short-term upside should watch the 50-hour MA, which has done well throughout the month at holding back any bounce. In this case the $89.25 area will be the first hurdle to break.
WTI should be capped at $85.75
The $84 level is holding for now here, but oil bulls will be nervously eyeing next potential support around $81. The drop back below the 50-hour MA today means that WTI's lows of yesterday are back in play, while the upside should be capped by the 100-hour MA at $85.75.