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19 Jun 2013
Commodities Brief: Precious metals technical set up continues to deteriorate
FXstreet.com (Barcelona) - The precious metals suffered moderate declines today, with gold closing down 1.22% to finish at 1367 while silver gave back 0.73% to close at 21.60.
Oil continues to inch higher towards $100
Oil was able to finish the day with nice gains, closing up 0.65% at 98.81 (and well off the lows set early in the day down at 97.65). The pair continues to hold the previous resistance trend line (97.00 area) on the daily/weekly charts which is now acting as support. The technical set up on the daily oil chart remains strong, with price above both the upward sloping 9 and 20 dma’s, and the RSI (14) consolidating above 60. Initial resistance now sits at 99 (high of week), followed by 100 (psychological level). First support sits at 98.29 (the 20dma on 1 hour chart)
Gold closes below support trend line on daily chart
From a technical perspective, the close below the previous support trend line located at 1379 is a bearish development and could help lead to further selling over the next few days. Furthermore, the close below this trend line has actually led to the completion of a massive pennant pattern on the daily chart which has targets as low as 1211.. Initial resistance now sits at 1379 (close above would negate pennant pattern), while first support sits at 1355 (support on daily chart).
Oil continues to inch higher towards $100
Oil was able to finish the day with nice gains, closing up 0.65% at 98.81 (and well off the lows set early in the day down at 97.65). The pair continues to hold the previous resistance trend line (97.00 area) on the daily/weekly charts which is now acting as support. The technical set up on the daily oil chart remains strong, with price above both the upward sloping 9 and 20 dma’s, and the RSI (14) consolidating above 60. Initial resistance now sits at 99 (high of week), followed by 100 (psychological level). First support sits at 98.29 (the 20dma on 1 hour chart)
Gold closes below support trend line on daily chart
From a technical perspective, the close below the previous support trend line located at 1379 is a bearish development and could help lead to further selling over the next few days. Furthermore, the close below this trend line has actually led to the completion of a massive pennant pattern on the daily chart which has targets as low as 1211.. Initial resistance now sits at 1379 (close above would negate pennant pattern), while first support sits at 1355 (support on daily chart).