Levels to watch: gold, silver and crude

A calm has descended over commodities, as we await news from today’s Eurogroup meeting regarding Greece.

A miner at work
Source: Bloomberg

Gold loses momentum

Yesterday’s rally towards $1220 has run out of steam for the time being, although the price remains above the rising trendline I pointed out yesterday. So long as this holds then the bias still remains to the upside, even if the price has yet to mount a challenge on the 100-hour MA.

The $1220 level and $1240 remain upside targets, while a loss of the trendline and then $1200 opens the way back to $1170.

Silver approaching $16.20

A steady drift below $16.50 and a still-declining relative strength index confirms that the bears still have the upper hand here. A continuation of this move brings us towards potential support at $16.20, while a firm drop will have to run towards $15.50 to find real support.

Conversely, the price must manage a close above the 50- and 100-day moving averages and then challenge the confluence of the rising trendline from the December lows followed by the descending trend from the January high, which lies around the $17 mark.

Brent RSI below 10-DMA

The Brent price has oscillated around the rising trendline from 30 January, but has slipped below it once again, as the 100-hour moving average slips lower.

On the daily chart we continue to see weakness in the RSI and momentum indicators, with the RSI dropping below its 10-DMA and the stochastic momentum index still displaying a bearish crossover. An initial target is the $56.10 area, and then the $55.10 zone, while upside moves must manage a daily close above the highs from this week, in the area of $62.50.

WTI off week highs

Yesterday’s dip lower was swiftly reversed, with the price moving back above the 50-DMA, but the price remains firmly off the highs for the week, with the RSI and other indicators flashing up the same sort of bearish indicators as in Brent crude. The rising trendline has yet to be broken on the hourly chart, but a drop through will target yesterday’s low at $50, and a close below here leaves the price vulnerable to a further move down towards $47.70.

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