Levels to watch: gold, silver & crude

Gold has slipped back towards key support, while oil prices look to be rolling over once again.

Silver bars
Source: Bloomberg

Gold defeated by $1180 again
Each time gold attempts to move far from $1180 it gets slapped back down, and today has been no exception. Thus we still wait for any sign that the $1180 level is going to break. A descending triangle means that we are awaiting a major breakout to one side or the other. If $1180 breaks then it may be a swift flush to $1150.

Silver resumes its move lower
Silver has continued to edge lower since its spike higher on Monday. Having failed to breach the 200-day simple moving average this week we look to the area of $16.20 for support if this week’s lows around $16.40 fail to hold. I await a turnaround in momentum indicators before taking a more bullish stance.

Brent crude is in retreat
With Brent crude having failed to hold $65 this week, oil bulls will be hoping the 50-day SMA at $63.11 can provide some support. However, with the relative strength index and stochastics now turning bearish on the daily chart, I suspect we will see a move towards the 100-day SMA at $59.54. It would require a recovery of $65 to cancel out this scenario and restore the upside picture.

WTI looks to turn lower
US light crude is in retreat as well, with a move below the 14-day exponential moving average at $59.70 signalling that the bulls have lost control. I await a definite turn lower in daily stochastics before turning bearish, but it looks like we will be heading towards the 50-day SMA at $56.84.

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