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

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.