Technical analysis: key levels for gold, silver and crude

Commodities are little changed so far today without the prospect of US trading this afternoon.

Silver bars
Source: Bloomberg

Gold eyes $1330

Gold continues to see-saw around $1320, but it looks like the drop towards $1310 yesterday was just a whipsaw to catch out the bears.

For the moment, the short-term upside remains a move to $1330, while $1305 (the 100-day moving average) continues to provide support on the downside.

Silver loses momentum

The momentum in silver has run out for now, but the hammer candle in yesterday’s trading suggests there are plenty of buyers on the dips.

The move higher won’t be easy, or particularly straightforward, but the upside scenario towards $22 still prevails at the moment.

Range trading over the past few sessions suggests a closely-fought battle, with $20.80 holding the bottom end of the range and $21.20 being a major hurdle at present.

Brent sees further losses

Light volumes have seen crude continue its losses, but the low of yesterday’s session around $110.50 is a key area to look for. A drop through here would signal further losses, although the 50-day moving average will rapidly enter the frame as support.

In the short-term, a recovery would need to see the price move above the 50-hour moving average, ideally followed by the crossing of this MA above the 200-hour MA.

NYMEX finds support around $103.40

Stochastics and moving average convergence divergence (MACD) continue to indicate weakness in NYMEX, although the January trend remains intact, with support available around $103.40.

Dip buyers have yet to enter the frame, but either the 50-DMA or 100-DMA would be points at which they may step in.

Further downside should run into $102 as support, and any bounce higher would need to see a recovery of $108 to be a continuation of the upward trend.

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