Technical analysis: key levels for gold, silver and crude

Gold and silver have found some support after a difficult day yesterday, but oil continues to fall, entering a fourth successive week of losses.

Oil barrel
Source: Bloomberg

Gold take a breath

After its beating yesterday, gold has paused at $1310, finding support close to the 100-daily moving average.

This is a short-term positive signal, but the slump from $1340 is a worrying sign, even if it has been overdone. After such a drubbing the bias lies to the downside, and any close below $1300 would be a sign that points towards a drop back to $1280.

$1305 is looking to be a significant zone of support on the hourly chart, but more interesting is the $1310-$1330 range. A close inside here would suggest some upward momentum, but at the time of writing the price is falling towards the lows of the day.

Silver light on buyers

Few buyers are to be found in silver at present, and the price now seems to have a major fight on its hands to break through $21 again.

Although supported at present by the 20-hour moving average, silver is struggling to break higher, and until it successfully retakes the 200-hour moving average then the outlook remains bearish for this market.

Brent crude drops sharply

The compellingly smooth downtrend on the Brent hourly chart has seen a sharp drop this afternoon, and the next resting point looks to be $105.80.

Little has stood in the way of this dive, but Brent is now dropping into oversold territory for the first time. A short-term bounce, lasting perhaps a day, might help clear this, but broadly the next medium-term target is $105.

US light crude awaits rescue

The loss of the ‘psychological’ level of $100 and then the drop through the 200-DMA will send a clear signal that there is more weakness to come here.

The first stop is likely to be $99.30, but beyond that the March lows around $97.40 are in sight.

If NYMEX can close above the 200-DMA today then buyers may appear to rescue it, but we would need a close firmly above $101 to reignite a more bullish view.

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