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Gold, Silver And WTI Crude Oil: Technical Outlook



Following its bounce from $1306-07 support-confluence on Wednesday, comprising 100-day SMA and nine-month-old ascending trend-line, Gold prices challenged an immediate TL resistance; however, the yellow metal failed to surpass the same, but didn't dip below $1330 nearby support, and is again heading towards the same trend-line resistance around $1344-45. Given the bullion manage to clear the $1345 figure on a closing basis, it becomes capable enough to print $1358 and the July highs of $1375, which if broken could further propel the quote towards $1388 & the $1400 round figure. Alternatively, $1330 and the $1325 are likely adjacent rests that the precious metal price might avail, breaking which $1318 and the TL mark of $1308, followed by 100-day SMA level of $1307, again come alive on the chart. Should the Gold declines below $1307 on a closing basis, the 23.6% Fibonacci Retracement of its December 2015 – July 2016 upside, at $1298, could act as a barrier prior to dragging the metal to $1282 & $1275 support levels.


Alike Gold prices, Silver quotes are also near to the $20.08 trend-line which it failed to clear yesterday. Though, Silver being an industrial metal is presently having lesser strength as compared to the Gold and might revisit $19.65 support. If the white-metal declines below $19.65, the 23.6% Fibonacci Retracement of its December 2015 – July 2016 north-run, at $19.35, and the $19.00 round figure are likely consecutive downside figures to be observed ahead of looking at the 100-day SMA level of $18.60. In case of the metal's additional downside below $18.60, the 38.2% Fibo level of $18.25 and the $18.00 - $17.90 can entertain metal Bears. Meanwhile, metal's rally beyond $20.08 can trigger its up-move towards $20.30 and then to the $20.55 resistance, which if broken could accelerate its advances to August highs of $20.77 and to the July high of $21.12. Should the quote continue rising beyond $21.12, chances of its rally towards $21.50 can't be denied.


During its fourth positive-day, the Crude prices are near to $46.25-30 resistance confluence, including 100-day SMA & 23.6% Fibonacci Retracement of its January-June advances. However, the energy prices, even after breaking $46.30 on a closing basis, still need to confront with $46.80 TL that confined its up-moves during August – September period, which if broken can trigger its rally to $47.20 & $47.90 resistances. Given the prices continue rising beyond $47.90, the $48.65 and the $49.50 are likely next landmarks for Crude to flash. On the downside, a daily close below $44.70 might drag the quote to $44.00 and then to 38.2% Fibo level of $42.75 but a seven-month old upward slanting trend-line, at $42.00 now, becomes strong enough to restrict its further decline. If the broader supply-glut and failure of the global energy producers to agree on production-freeze, during next week's meeting, drag prices below $42.00, the Crude becomes vulnerable enough to plunge towards $40.90 & to the $39.00 downside figures.

Cheers and Safe Trading,

Anil Panchal

Source: https://www.mtrading.com/analytics/technical-analysis/gold-silver-and-wti-crude-oil-technical-outlook
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