WTI and gold expected to diverge after recent losses
Gold declines are unlikely to last, while WTI is expected to continue its slide.
Gold eases back into Fibonacci support
Gold has been easing back over recent trading days, with the price falling back into trendline and 61.8% Fibonacci support ($1690). The wider trend remains very clear for gold, with further upside expect before long.
With the stochastic crossing back through the 20 mark, there is a good chance we could start to see momentum turn in the favour of the bulls once again. With that in mind, a bullish outlook is in play here, with a break below $1660 required to negate that view.
WTI bears back in the driving seat
WTI gains have proven short-lived, with the consolidation seen from Thursday to Monday ultimately proving to be a topping pattern. The breakdown below $1648 provided us with a sell signal, with the price heading lower since.
With that in mind, further downside looks likely as long as we continue to create lower highs. While we are just three days from the OPEC+ production cuts, the issue of overproduction and a lack of storage means WTI will likely continue to come under continued pressure unless another major output cut is announced.
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