Levels to watch: gold, silver and crude

Precious metals are still finding fresh buyers, while oil prices are taking advantage of a weaker dollar to move higher.

A man checking oil barrels
Source: Bloomberg

Gold bulls in control

The steady march higher continues here, with the $1200 level and then the 100-day simple moving average (SMA) at $1208 still the upside targets to watch for. Dips towards the 14-day exponential moving average (EMA) brought out the buyers, so only a close back below this indicator, currently around $1180, would signal that the rally has come to an end.

A breakout above the 100-day SMA would then lead to a test of resistance around $1220, the 50-day SMA. With the daily relative strength index (RSI) and stochastics still strong the bulls have the upper hand here.

Silver rally intact

The white metal is showing some skittishness around $17, but overall the rally here is still intact as well. A slight overbought reading on the RSI on the daily chart should be unduly concerning, as any dip towards the 50-day SMA will likely see a resumption of buying pressure.

A next target is $17.50, the resistance level that prevailed throughout February, followed on by the 200-day SMA at $17.80.

Brent’s momentum indicators rising

Yesterday’s turnaround in Brent indicates that the buyers are back in control. For now the 50-day SMA is still proving to be a stumbling block, but a rising RSI and stochastic momentum index shows that the upside is the path of least resistance.

The four-hour chart has the 20-period EMA moving swiftly higher and likely to stage a bullish crossover with its 50-period counterpart. The $56.80 level was resistance last week, but a move above here would signal further gains are on the way. A steady progression of higher highs and higher lows is the sign that $52.80 may mark the lows here for the time being.

WTI eyes close above 50-day SMA

US light crude continues its oversold bounce from below $45. An initial target is a daily close above the 50-day SMA at $48.80, with a target beyond that of the month highs at $52.40. A failure to hold the 14-day EMA would be a worrying sign, but stochastics on the daily chart continue to point to further gains ahead. 

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