WTI Crude has just broken above December's high of 7144, signaling a more positive outlook.
As noted, a break above 7180 could spark buying interest and trigger stops on short positions, with targets at 7240/7280 for profit-taking on long positions.
A break above 7295 would signal further buying, targeting 7360/7390.
If WTI Crude fails to surpass 7240/7280, it risks remaining in a sideways range, potentially sliding to 7210/00 or even to stronger support at 7155/35. Long positions should place stops below 7095 to mitigate risk.
Gold
- Gold (XAU/USD) remains in quite an erratic sideways channel - poor trading conditions, especially at this time of the year when volumes are lower than normal.
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The most recent 14-day range is from 2582 up to 2639.
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Holding above 2626/29 can target 14-day high at 2638/39.
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A break above 2641 this week could trigger some buying pressure targeting 2650/51.
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If Gold continues higher look for 2658/59, perhaps as far as minor resistance at 2663/65.
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A high for the day is possible here. Shorts need stops above 2674.
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There should be support at 2605/00.
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A break below 2600 risks a slide to 2590/85.
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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.
Gold 1-Hour and Daily Chart
Silver
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Silver (XAG/USD) also remains in quite an erratic sideways channel - poor trading conditions, especially at this time of the year when volumes are lower than normal.
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We should encounter resistance again at 2960/70.
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Shorts need stops above 2990.
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A break higher may only reach 3010/20 but above here can target 3050/55.
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We could meet resistance at 3055/3065 but shorts need stops above 3095.
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Holding resistance at 2960/70 can target 2925/20.
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Below 2910 look for a tret of the December double bottom low at 2885/75.
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A break of December's low of 2872 targets 2850, perhaps as far as 2830/25.
Silver 1-Hour and Daily Chart
