Gold buying pressure on the up
Two days of weakness have come to an end but gold still seems unable to break above the $1312 level. On the downside it seems the selling is constrained by $1307, so we have a rather narrow range developing.
The daily relative strength index is continuing to move higher however, and with the daily moving average convergence/divergence moving upwards as well, the buying pressure appears to be gaining momentum.
A close above $1312 would target $1320, with a longer-term target of $1340, while any downside for now should be limited by a combination of the $1300 level and the 50-day moving average.
Silver struggles to break 200-DMA
Silver has tiptoed towards the 200-DMA today but failed to break through. In any case, even a breach of this moving average would still need to clear the downtrend from the July highs.
With this in mind, the downside scenario in the direction of $19.75 still prevails if minor resistance around $19.90 can be cleared.
On the hourly chart there is clear resistance at $20.10, and although the intraday RSI is rising, the 200-hour MA has proved to be a major barrier since the second half of July.
Brent finds support at $104.40
With Brent still stuck in its $104-$106 trading range there has been little change in the overall outlook.
It has been over a year since we saw the commodity trade below $104 in any meaningful fashion, with the brief November dip really just a blip on the screen.
On the hourly chart $104.40 is holding up well today as support, but any break higher must clear the 100-hour MA at $105 and then challenge the 200-hour MA at $105.30.
WTI eyes $98.50
The WTI bounce from the trendline remains intact, despite some weakness today. However, the price needs to move above $98 now to be in with a chance of making real gains.
The hourly chart shows a number of hurdles that WTI will have to break, with the 50-, 100- and 200-hour MAs all in close proximity. Recent highs over the past two days have been around $98.50, so this should be the near-term target for now.
On the downside, the lows of 7 August near $96.60 will be the first target.