Gold remains below 50-DMA
Although gold has stabilised in the past two sessions, it remains below the 50-day moving average. An attempt to push below the 200-DMA was halted yesterday, but the downside scenario still prevails.
Gold needs to see a close above the 50-DMA to have a chance at making any upward progress, but with the daily relative strength index still not rising and the 20-DMA still pointing lower I expect to see another attempt to break through the 200-DMA and then push below $1280.
The 200-hour moving average has acted as a nice ceiling on gains for gold, and on the hourly chart it seems evident that $1285 will be retested.
Silver below three major MAs
The dive through the 100-DMA yesterday puts silver below all three major moving averages, with a possible support line at $19.50 developing.
Beyond this the June lows around $18.70 are in focus, although the oversold reading on the daily RSI may provide a brief bounce.
Only a close back above $20 shifts the emphasis back towards short-term upside.
Brent eyes 50-hour MA
Brent attempted to breach $104 yesterday but saw buyers step in. However, there has been no uptick in the daily RSI or any other indicator to suggest this is more than a short-term movement.
Brent needs to recover $105, but for the moment the sellers still have the upper hand.
On an hourly chart $104.50 is holding well as support, but the 50-hour MA needs to be breached, and then the $105.50 level broken to indicate a rally is in progress.
$97.50 supporting WTI
The $97.50 level is holding as support in thin trade today, while $97 stopped the selling on the downside yesterday.
While WTI remains below the $100 level there is little chance of further upside, and we may soon see the 20-DMA cross below the 200-DMA, which has not occurred since the last week of March.
On the downside WTI needs to clear $97, the lows from 1 August, and a drop through here would open the way to $96, last seen in early February.