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Gold could fall below $1200
With the loss of $1215 it now looks increasingly likely that we will see gold push below $1200. Support is possible around $1190, with further support perhaps entering the frame around $1156.
Any rallies continue to be capped by likely resistance around $1222 and then the 20-day moving average at $1230. A small oversold reading on the daily relative strength index means we could see a move back towards $1215 before the next leg down commences.
Silver RSI still oversold
We have to look further and further back for possible support in silver prices, and while $17 is one potential area the magnitude of this downward move suggests most levels are there to be broken.
Should $17 be broken then the weekly chart suggests $16.70. The daily RSI continues to sit deep in oversold territory, but any bounce towards $17.50 is likely to be sold once again.
Brent's struggle continues
Brent’s abysmal day yesterday saw the $95.30 level broken and so we look towards $91.20 as an area where buyers may re-enter the picture, given that this level was major support in 2012.
An oversold bounce should carry us back towards $97.15, but then the next leg down is likely to commence, given the preponderance of supply.
50-DMA capping WTI upside
Yesterday’s slump shows that there were a number of sellers waiting to send the commodity back down once it neared the 50-DMA, and it certainly restores the downside scenario that had looked under pressure since last week.
If the lows around $90.90 are lost then we look to the weekly chart and then $90.35 area, followed up by $88.35. The 50-DMA at $95 still acts as the major barrier on the upside.