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.
Gold continues to improve
This now moves the downside risk range to $1,204, which if held could bring $1,208.2-$1,209.2 into play. However, should a close below $1,204 be seen it is likely a retest of the $1,200 level.
A slow day for in terms of economic data releases, so gold markets are likely to trade in a rather lethargic fashion.
Has silver found a bottom?
Silver has found short-term downside support at $16.38, and if maintained should result in a retest of Monday’s high of $16.46. However, silver will need to post a close above $16.45 in order to sustain a bullish pattern which, if achieved, would signal a move higher to $16.52.
Short-term rally offers downside opportunity
Without any marked turnaround in the fundamentals, it is a question of where the bottom is in Brent as it continues to push lower. The downside risk range on Monday of $67.11 was taken out, touching a daily low of $65.30. The lower risk range has now shifted to $65.56 with an upside target of $67.16. However, the wider bear trend remains intact and should downside targets be broken it is likely to lead to the next area of resistance at $63.53.
WTI rallies into resistance
A similar story in WTI prices, which saw a short-term rally this morning of +0.17% off Monday’s multi-year low of $62.27. Upside resistance is likely to be seen at $63.56 which, if maintained, would signal a turnaround and retest the lows with targets at $61.94.