Gold and Silver remain trapped in sideways consolidation patterns
|XAU/USD
Gold headed higher yesterday to recover 2 days of losses.
As is typical in a sideways market, prices reversed again & won back losses to retest last week's high at last week's high at 2662/65, with a high for the day exactly here again.
At this stage there is no indication of a trend starting so we make do with the choppy conditions, where prices keep reversing throughout the day.
As you know, moving averages & Fibonacci levels are of no use in these conditions.
Minor resistance at last week's high at 2662/65 is key to direction today
Bulls need a break above here to target 2672/75, perhaps as far as 3 month trend line resistance at 2688/92.
Failure to beat last week's high at 2662/65 saw prices reverse quickly again to 2642.
Minor support at 2635/30.
A break below 2630 can target 2625/23, perhaps as far as this week's low at 2616/14.
There's a very short term trend line at 2610/07 which may offer support today but longs need stops below 2604.
We must wait for a breakout of the sideways pattern but I expect this to take some time - could be a couple of weeks.
XAG/USD
Silver remains unable to sustain a move in 1 direction for long in the erratic, random sideways pattern.
We could meet resistance at 3055/3065 today but shorts need stops above 3095.
We could find support at 2690/80 (a low for the day here yesterday) but longs need stops below 2960.
A break below 2660 risks a slide to 2925/20.
Below 2910 look for a tret of the December double bottom low at 2885/75.
A break of December's low of 2872 targets 2850, perhaps as far as 2830/25.
WTI Crude February future
Last session low & high: 7311 - 7453.
WTI Crude could also begin trading in a sideways range.
We made a low for the day at support at 7320/00 in the very early hours of the morning but longs need stops below 7275 if the level is retested today.
A break lower risks a slide to 7210/7190.
There is likely to be resistance again at 7465/85 & we did make a high for the day just a few tocks below here yesterday.
However on a break above 7500 look for 7555/65. In overbought conditions this may be as far as we can go but shorts need stops above 7605.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.