WTI Broke Significant Support, Gold Nears Major Resistance
October 26, 2016 10:24 am
WTI spot had held above the significant support line at 50.00 in the past two weeks, after retracing from the mid-term major resistance level at 52.00. Yet the support line has been broken yesterday, as the API Crude Oil Stock figure surged to 4.8 million barrels, hit the highest level since this April. The breakthrough indicates that the trend will likely turn into bearish. The downturn is currently testing the next significant support zone between 49.40 – 49.00, if it is confirmed broken, then the bearish momentum will be intensified. The resistance level is at 50.00, followed by 50.50 and 51.00. The support line is at 49.40, followed by 49.00 and 48.60. The 4 hourly Stochastic Oscillator is belwo10, indicating a moderate rebound will likely happen prior to the next fall. Keep an eye on the US EIA Crude Oil Inventories figure, to be released at 14:30 GMT today, it will influence the trend of oil prices. It will be more likely we will see an excess according to the API figure. With lower-than-expected figure, oil prices will likely rally. With higher-than-expected figure, it will further weigh on oil prices, the support line at 49.40 will likely be broken. Despite the recent rally of the dollar, the gold prices remain firm after testing the significant mid-term support line at 1250, as this level provides very strong support. The spot gold has formed a new mid-term downside uptrend line support. The current trend remains upward. Yet the current price is trading below the mid-term major resistance level at 1280, the selling pressure is heavy above the level. In addition, the 4 hourly Stochastic Oscillator is around 75. Be aware of a retracement at the level. The resistance level is at 1276, followed by 1280 and 1285. The support line is at 1273, followed by 1270, 1267 and 1262. We will see the release of a series of important US economic figures to be release today, it will influence the strength of the dollar, and will likely affect the trend of gold prices. It includes the Goods Trade Balance for September, to be released at 12:30 GMT. The Markit Services and Composite PMIs for October, and the New Homes Sales (MoM) for September, to be released between 13:45 – 14:00 GMT. With lower-than-expected figure, gold prices will likely rally and test the resistance level at 1276. With better-than-expected figures, it will likely weigh on gold prices and test the support line at 1273. Source: FX Pro Market Snapshot
WTI spot had held above the significant support line at 50.00 in the past two weeks, after retracing from the mid-term major resistance level at 52.00. Yet the support line has been broken yesterday, as the API Crude Oil Stock figure surged to 4.8 million barrels, hit the highest level since this April. The breakthrough indicates that the trend will likely turn into bearish. The downturn is currently testing the next significant support zone between 49.40 – 49.00, if it is confirmed broken, then the bearish momentum will be intensified. The resistance level is at 50.00, followed by 50.50 and 51.00. The support line is at 49.40, followed by 49.00 and 48.60. The 4 hourly Stochastic Oscillator is belwo10, indicating a moderate rebound will likely happen prior to the next fall. Keep an eye on the US EIA Crude Oil Inventories figure, to be released at 14:30 GMT today, it will influence the trend of oil prices. It will be more likely we will see an excess according to the API figure. With lower-than-expected figure, oil prices will likely rally. With higher-than-expected figure, it will further weigh on oil prices, the support line at 49.40 will likely be broken. Despite the recent rally of the dollar, the gold prices remain firm after testing the significant mid-term support line at 1250, as this level provides very strong support. The spot gold has formed a new mid-term downside uptrend line support. The current trend remains upward. Yet the current price is trading below the mid-term major resistance level at 1280, the selling pressure is heavy above the level. In addition, the 4 hourly Stochastic Oscillator is around 75. Be aware of a retracement at the level. The resistance level is at 1276, followed by 1280 and 1285. The support line is at 1273, followed by 1270, 1267 and 1262. We will see the release of a series of important US economic figures to be release today, it will influence the strength of the dollar, and will likely affect the trend of gold prices. It includes the Goods Trade Balance for September, to be released at 12:30 GMT. The Markit Services and Composite PMIs for October, and the New Homes Sales (MoM) for September, to be released between 13:45 – 14:00 GMT. With lower-than-expected figure, gold prices will likely rally and test the resistance level at 1276. With better-than-expected figures, it will likely weigh on gold prices and test the support line at 1273.
Source: FX Pro Market Snapshot
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