Oil: Buy Signal Emerges for WTI Crude

Gold

• Gold (XAU/USD) remains in quite an erratic sideways channel.

• We beat the 14 day high at 2638/39.

• We wrote: ''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.''

• We are closing in on the upper target of 2663/65 as I write over night.

• There's up to 20 points profit if you managed to buy on the break above 2641.

• A high for the day is possible here. Shorts need stops above 2674.

• A break higher targets 3 month trend line resistance at 2688/92.

• Failure to beat minor resistance at 2663/65 targets 2653/51, perhaps as far as 2647/45.

• Support at 2645/42 but longs need stops below 2638.

Silver

1. Silver (XAG/USD) also remains in quite an erratic sideways channel as we win back late December losses on Thursday.

2. We should encounter resistance again at 2960/70. & in fact we saw a high for the day exactly here yesterday. Shorts need stops above 2990.A break higher may only reach 3010/20 but above here can target 3050/55.

3. We could meet resistance at 3055/3065 but shorts need stops above 3095.

4. Holding resistance at 2960/70 can target 2925/20.We had a low for the morning & afternoon session just below here at 2915.

5. Below 2910 look for a tret of the December double bottom low at 2885/75.

6. A break of December's low of 2872 targets 2850, perhaps as far as 2830/25.

WTI Crude February Future

Last session low & high: 7179 - 7373.

(To compare the spread with the contract that you trade).

WTI Crude beat the December high of 7144 for a more positive outlook on 31 December.

The break above 7180 triggered buying interest as predicted targeting 7240/7280 for profit taking on any longs. I hope you caught this trade.

The break above 7295 was the next buy signal targeting 7360/7390.

We made a high for the day exactly here at this target for up to 150 ticks profit buying WTI Crude yesterday. With a high for the day exactly at my 7360/7390 target, this is acting as minor resistance.

We could retrace to support at 7230/00. Try longs with stop below 7170.

A break above 7415 is a buy signal for today targeting 7465/85. Above 7500 look for 7555/65.