WTI Crude beats the December high for a short term buy signal

01/02/2025 08:12:00 GMT|ByJason Sen

XAU/USD

Gold remains in quite an erratic sideways channel - poor trading conditions, especially at this time of the year when volumes are lower than normal.
The most recent 14 day range is from 2582 up to 2639.
Holding above 2626/29 can target 14 day high at 2638/39.
A break above 2641 this week could trigger some buying pressure targeting 2650/51.
If Gold continues higher look for 2658/59, perhaps as far as minor resistance at 2663/65.
A high for the day is possible here. Shorts need stops above 2674.
There should be support at 2605/00.
A break below 2600 risks a slide to 2590/85.
A break below the December low at 2582 could trigger further downside pressure towards 2575/72, perhaps as far as 2563/60.
We must patiently wait for a breakout, trend or pattern to form.

One-hour and daily chart

XAG/USD

Silver also remains in quite an erratic sideways channel - poor trading conditions, especially at this time of the year when volumes are lower than normal.
We should encounter resistance again at 2960/70.
Shorts need stops above 2990.
A break higher may only reach 3010/20 but above here can target 3050/55.
We could meet resistance at 3055/3065 but shorts need stops above 3095.
Holding resistance at 2960/70 can target 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.

Silver one-hour and daily chart

WTI Crude February future

Last session low & high: 7087 - 7202.

WTI Crude just broke above the December high of 7144 for a more positive outlook.

As we wrote: A break above 7180 could trigger buying interest (& could certainly trigger stops on short positions) targeting 7240/7280 for profit taking on any longs.

A break above 7295 is the next buy signal targeting 7360/7390.

Failure to beat 7240/7280 keeps WTI Crude in a sideways range & risks a slide to 7210/00, perhaps as far as strong support at 7155/35 & longs need stops below 7095.

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Analysis