WTI finds interim support, gold and natural gas stay side-lined
Outlook on WTI, gold and natural gas.
WTI bounces off support
Oil - US Crude is regaining some of its recently lost ground after an industry report showed that US crude inventories decreased by more than 6 million barrels last week, exceeding expectations for a 1.7 million barrel decline. Nonetheless, the US oil benchmark continues to hover above its 55-day simple moving average (SMA) at $76.53 amid concerns about slowing global economic growth and tightening financial conditions that could hurt energy demand.
The $76.48 to $75.76 remaining price gap with the late March high may thus still get filled, provided that this week’s high at $79.14 isn’t overcome on a daily chart closing basis. It was made right along the breached January-to-March downtrend line which, although breached, still acts as a resistance line.
Downside pressure should thus remain in play while this week’s $79.14 high caps on a daily chart closing basis.
Gold continues to oscillate around the $2,000 mark
Spot Gold formed a minor top at its one-year $2,048 per troy ounce mid-April high - as the US dollar bounced off its one-year low - and last Wednesday dipped to its mid-April low at $1,970 before range trading above it but below Thursday’s high at $2,012.
Further sideways trading between these two levels is likely to take place over the coming days. A fall through and daily chart close below the $1,970 low would confirm that at least an interim top has been formed, in which case the February high at $1,959 ahead of the $1,950 to $1,935 support zone, the late March and early April lows, would be in focus.
Immediate resistance remains to be found between the $2,003 to $2,009 late March highs ahead of the 20 April high at 2,012. Above it lies further resistance at the 5 April high at $2,032.
US natural gas futures continue to be side-lined
The recovery in US Natural Gas futures amid an expected cold spell has so far taken these to their mid-April high at $2.504 before oscillating around the 55-day simple moving average (SMA) at $2.425.
Since the medium-term trend is still pointing down, another leg lower may ensue unless a rise and daily chart close above the recent high at $2.504 is seen. In this scenario the mid-March high at $2.737 would be in focus.
Another minor top would be formed if a fall through and daily chart close below the 20 April low at $2.284 were to be made, in which case the February and current April lows at $2.105 to $2.063 would be back in the firing line.
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