Gold's progress checked by 20-DMA
Gold’s move off the lows yesterday continues, and with the daily relative strength index moving out of oversold territory and the moving average convergence/divergence showing its first positive crossover since early August there may be the makings of a bounce here.
Any move upwards will be capped by the 20-day moving average around $1228, with $1240 also likely to provide resistance.
The $1200 level remains the symbolic support area, with $1190 beyond that. On the hourly chart $1205 also stopped the selling on Tuesday and Wednesday.
100-hour MA hindering Silver progress
The failure to break $17.50 on the upside yesterday suggests that the downside still has the upper hand at present.
Yet again the 100-hour MA on the hourly chart has stunted any progress and silver has slumped below the 50-hour as well. This points the way to a test of yesterday’s lows around $16.90, with only a break through $17.40 suggesting that silver is about to make another run towards the 200-hour MA at $17.50.
$91.50 could support Brent
A weekly chart shows that the $91.50 area has the potential to provide support for Brent, being around the lows of 2012. Any moves to the upside need to recover the $94.30 zone as a first target and then on to $96.60.
WTI could find support at $88.25
The $88.25 level, the 2013 low, is potential support here, based on a weekly chart, with $85 below it.
An oversold reading on the hourly chart indicates a bounce could be in the offing, in which case we look to the 50-hour MA at $91.50 and then the 200-hour at $92.20.