Gold finds resistance at 20-DMA
The bounce here has carried gold through the $1209 and $1215 levels, but the 20-day moving average is providing some resistance for the time being. Attempts to hold above $1220 have been beaten so far, but a close above here would target $1230 and then $1235.
A drop lower could find support around $1203, followed by $1190 and $1184, the latter marking the lows of this week’s price action.
Silver progress hindered by $17.50
The metal has finally pulled itself out of the oversold zone, but once again the $17.50 area is proving to be a stumbling block. Even if silver can emulate gold and continue its rally the $17.80 area will likely provide resistance as well.
The hourly chart sees another attempt to hold above the 200-hour MA. Yesterday’s attempt was short-lived and ran out of steam at $17.60 but even $17.40 is proving too much so far today. A drop lower would first test the 200-hour at $17.25 and then $17.15.
Brent could drop to $88.40
Some support for Brent may be found around $90.70, but the next stop still looks like the 2012 low around $88.40. Any break higher requires a breach of the 50-hour MA at $92.11, and then the 100-hour around $92.55. A sustained bounce would still find it difficult to break the 200-hour, currently around $94.44.
$87.70 holding as support for WTI
The steady trend on the four-hour chart is not one to be trifled with at present. Resistance has been found around the $90.40 level, while on the weekly chart $87.70 continues to hold as support for the commodity.