The Technical Outlook for Gold & WTI Crude Oil (Daily)
Gold
Spot Gold (CMX:GCM16) advanced Friday on weal market’s sentiment, but closed the week in the Red at 1,273.65 oz.
The precious Yellow metal fell sharply intra-day on some positive US economic data, but pared its daily losses during the US afternoon session, as safe haven assets gained on Wall Street’s fall.
Ever since flirting with the 1,300.00 region, the highest for the year, Gold has been developing within a descendant channel, indicating the Bullish trend that dominated it ever since the year started is beginning to fade.
Still, a downward continuation is out of the picture, at least until a break below a daily ascendant trend line coming from mid-February, currently at 1,235.00.
On a daily basis, the price is struggling to hold above a mild Bullish 20-Day SMA, as the technical indicators present a Neutral stance within positive territory.
In the 4 hours, the technical stance is also Neutral as the technical indicators head nowhere around their mid-lines, although with the Southside seen limited, given that the price is developing above all of its MA’s.
Support marks: 1265.60 1,256.80 1,242.50
Resistance marks:1,279.05 1,287.50 1,295.50
WTI Crude Oil (NYSEArca:USO)
Crude Oil prices closed the week near its yearly highs, with WTI Crude futures steady at 46.30 bbl.
Black Gold saw a limited decline early Friday, but news suggesting US output continues to decrease as the Baker Hughes (NYSE:BHI) Oil rig count fell to 318 Vs the prior 328, fueled hopes the worldwide glut is closer to an end, helping it to recover ground.
The report added to Thursday’s International Energy Agency (IEA) announcement that said that during 2-H of the year, global Crude Oil inventories will see a dramatic reduction on the back of strong demand.
The daily suggests that the rally may have reached an interim top in here, given that there’s a clear double top forming up, with its neckline at 43.00, meaning that a decline below this can see the decline accelerating towards 40.00.
The technical indicators are headed South within positive territory, drawing some Bearish divergence yet to be confirmed, although the 20-Day SMA keeps heading higher below the current mark.
In the 4 hours, the 20-Day SMA is headed higher below the current mark, as the RSI also advances around 62, maintaining the risk towards the Southside, particularly if the immediate support at 45.60 holds on pullbacks.
Support marks: 45.60 44.80 44.10
Resistance marks:46.75 47.60 48.20
Have a terrific week.
Paul Ebeling
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