Gold and Crude Oil Stall at Chart Support, SPX 500 Digesting Losses

Crude oil and gold prices are stalling after pulling back to chart support while the SPX 500 is digesting losses after sinking to a two-week low.

Talking Points:

• US Dollar Breaks Above Five-Month Range Resistance

• S&P 500 Consolidating After Sinking to Two-Week Low

• Crude Oil, Gold Continue to Stall at Technical Support

US DOLLAR TECHNICAL ANALYSIS – Prices broke a five-week range to extend to the highest level in over six years. A daily close above the 23.6% Fibonacci expansion at 11965 exposes the 38.2% level at 12107. Alternatively, a turn below the 11854-78 area (March 2009 high, 14% Fib) clears the way for a test of the February 26 low at 11737.

** The Dow Jones FXCM US Dollar Index and the Mirror Trader USD basket are not the same product.

S&P 500 TECHNICAL ANALYSIS – Prices took out range support at 2101.40, with sellers now aiming to challenge the 23.6% Fibonacci retracement at 2086.40. A break below this barrier exposes the 38.2% level at 2066.00. Alternatively, a reversal back above 2101.40 aims for the February 25 high at 2119.40.

GOLD TECHNICAL ANALYSIS – Prices continue to consolidate after descending to a two-month low below the $1200/oz figure. A break below the 23.6% Fibonacci expansion at 1194.94 exposes the 38.2% level at 1177.51. Alternatively, a rebound above the 1216.30-21.46 area marked by trend line support-turned-resistance and the 23.6% Fib retracement targets the 38.2% threshold at 1233.73.

CRUDE OIL TECHNICAL ANALYSIS – Prices launched a recovery as expected, with buyers now consolidating below February’s swing high. From here, a break below channel support at 60.50 exposes resistance-turned-support at 58.17. Alternatively, a close above the February 17 high at 62.98 exposes the 38.2% Fibonacci expansion at 64.58.