Levels to watch: gold, silver and crude

Commodities spiked higher yesterday, yet with major support up ahead, how long will it last?

Source: Bloomberg

Gold continues to consolidate
Yesterday brought the gold bounce we expected, pulling price away from the ongoing support level of $1178. Typically we have seen any upside restricted to below $1200 throughout May and thus I do think that any upside is likely to be capped around that level. No doubt we will have to see a breakout at some point, which I expect to be towards the upside. However, for now there is a clear period of consolidation which is likely to persist.

Silver heads for the top
Silver has seen a spike higher towards the upper end of the symmetrical triangle, providing a likely crossroads in the very near future. Should price move back to the upper threshold (currently $16.73) then it will provide the perfect opportunity.

I would expect to see price sell off from that level, but the fact that any move above there would invalidate the resistance means I can set my stops very close, providing a good risk/reward profile. While I do expect a little more upside, any move to $16.73 would bring a bearish view unless price breaks higher, in particular a move above $16.78.

Brent resurgence brings key questions for long-term implications
The spike higher in Brent crude yesterday came off the back of a very indecisive two days, with Friday posting a doji candle and Monday seeing very minimal volatility and direction. The question now is whether we can see a new high created or not.

A move above $69.62 would mean the bull trend continues. However, should the next high fail to top that marker, it would provide confidence that the uptrend is on the wane. For that reason, I am neutral today as I watch for intraday movements to provide clues as to which of the two will occur.

WTI spike falls short of new high
Much like Brent crude, WTI light has seen a significant spike yesterday which failed to create a new high. With price having created a new lower low, I am hesitant to jump back on board the bull train and, for now, I will similarly wait and see what the resolution is of this position.

A move above $62.57 would create a new high and bring a bullish outlook. Yet the failure to do so would lead to a reemergence of the bearish view.

Denna information har sammanställts av IG, ett handelsnamn för IG Markets Limited. Utöver friskrivningen nedan innehåller materialet på denna sida inte ett fastställande av våra handelspriser, eller ett erbjudande om en transaktion i ett finansiellt instrument. IG accepterar inget ansvar för eventuella åtgärder som görs eller inte görs baserat på detta material eller för de följder detta kan få. Inga garantier ges för riktigheten eller fullständigheten av denna information. Någon person som agerar på informationen gör det således på egen risk. Materialet tar inte hänsyn till specifika placeringsmål, ekonomiska situationer och behov av någon specifik person som får ta del av detta. Det har inte upprättats i enlighet med rättsliga krav som ställs för att främja oberoende investeringsanalyser utan skall betraktas som marknadsföringsmaterial. 

CFD-kontrakt är komplexa instrument som innebär stor risk för snabba förluster på grund av hävstången. 79 % av alla icke-professionella kunder förlorar pengar på CFD-handel hos den här leverantören.
Du bör tänka efter om du förstår hur CFD-kontrakt fungerar och om du har råd med den stora risken för att förlora dina pengar.
CFD-kontrakt är komplexa instrument som innebär stor risk för snabba förluster på grund av hävstången.