Market Analytics and Considerations
Key Notes
- Prices of gold and crude oil remain technically bullish in the near term.
- But WTI and XAU/USD seem to be running out of steam.
Technical Analysis of Gold
Within the confines of a Rising Wedge charting pattern, gold prices are still climbing. This is often a negative signal that can allow the preceding slump to restart. That would be the course that cheaper gold in this instance took through March to November. However, as long as XAU/USD trades inside the wedge’s confines, the trajectory may remain to be somewhat positive in the short term.
A breakthrough underneath the wedge could signal a growing technical tendency to the negative. That would make the 50-day Simple Moving Average the focal point (SMA). The latter could restore the positive bias in the near term. However, the tipping point among both 1725 and 1735 is lower than that.
Daily Chart
Technical Analysis of Crude Oil(WTI)
Contrary to gold, the price of crude oil has verified a bullish Falling Wedge graph formation’s upward break throughout its top. This has created an opportunity for an upward technical bias that may be able to break the short-term downturn that began in November and ended in the December middle. There are a few indications that the upward impetus is faltering, though.
The first is the 50-day SMA, whose continued to have a bearish tendency, prevented oil from clearing it. A Shooting Star candlestick trend is observed as the market challenged the previous level. The latter is often an indication of uncertainty that turns more alarming if prices decline after the star is formed. That is what has happened.
Daily
The 23.6% Fibonacci retracement area appear to be a necessary support level. Its 71.13 – 70.10 support region is revealed by a weaker closing price. The 61.8percentage – point retracement mark at 84.703 seems to be important barrier following prices move over the 50-day SMA.
