Technical Outlook For Gold And Crude Oil (Weekly)
$GLD, $USO, $OIL
The expected sideways movement in the Gold is happening, but energy is showing weakness as Saudi Arabia pulls back from any production freeze.
Gold finished at 1217.41 Friday and has been consolidating in the range of 1200-1250 as expected and this sideways mode may continue for a couple of sessions more.
The strong US Jobs data keeps it weak but any change in the risk perception this week may push it higher towards 1250 again.
Both NYMEX WTI Crude Oil finished at 36.37 Friday, and Brent Crude at 38.31 have weakened considerably as expected and expect to head further South.
WTI Crude Oil is already close to the near term target at 36 and in the absence of an immediate rally above 39, Brent Crude can decline to 37.00-36.00.
The probability of a major decline increases now and assumes at least 50% probability. WTI Crude Oil may decline to 36 and lower.
Note: Comments from Saudi Arabia on production freeze weigh on Crude Oil prices. Deputy Crown Prince Mohammed bin Salman noted that the Kingdom would only agree to freeze Crude Oil output if Iran and other major producers agree to do so too.
A meeting to discuss the production freeze is scheduled on 17 April. Yet, little is expected to achieve now as Iran has said several times that it would join the freeze and Saudi has just indicated its participation is conditioned on Iran’s.
Crude Oil prices slumped Friday.
On weekly basis, the front-month WTI Crude Oil contract plunged -6.77%, the Brent Crude contract is down -4.38%.
Technical analysis is a method of forecasting price movements by looking at purely market-generated data. Price data from a particular market is most commonly the type of information analyzed by a tech trader.
Have a terrific week.
HeffX-LTN
Paul Ebeling
The post Technical Outlook For Gold And Crude Oil (Weekly) appeared first on Live Trading News.