Strong bullish sentiment continues to drive gold higher, as gains accelerated after breaking above main bear trendline at 1668. Near-term price action is gaining momentum and poised for fresh extension higher, as previous high at 1741.70 has been cleared. Bulls remain in play despite overbought conditions, with focus at 1762.90, 03 Feb high and 1770.40, Fib 61.8% of larger 1920.90/1526.90 descend, seen as next targets. As the 55 day EMA underpins the action at 1700/1690 support zone, only break here would make stronger impact on short-term bulls.
Res: 1747, 1762, 1770, 1790
Sup: 1724, 1715, 1700, 1690
Silver briefly broke above 34.00 barrier, following near-term consolidation that was contained at 33.30 zone, in attempt to extend 2 ½ month uptrend from 26.11, end of June low. Sustained break above 34.00, sees 34.38, 09 Mar high and 34.80, Fib 76.4% of 37.48/26.11 downmove, as next targets. However, overextended conditions on daily studies and MACD bearish divergence, seen on 1 and 4 h charts, still see risk of reversal. Any dip below initial 33.30/00 support area, could be seen as signal for stronger corrective action.
Res: 34.08, 34.38, 34.80, 35.00
Sup: 33.48, 33.36, 33.20, 33.00
CRUDE OIL (Oct)
Positive sentiment, established on a break above 200 day MA and weaker greenback across the board, gave fresh boost to the oil price, as near-term price action breaks above 3-week range, as the price lifts above 97.64/70, range tops. Positive structure on near-term studies keeps the upside favored as price tests psychological 98.00 level, ahead of key barrier at 98.27, 23 Aug high. As larger picture studies are gaining momentum, continuation of 10-week rally from 77.27 low, through 98.27, would turn focus towards our short-term target and psychological barrier at 100.00. Previous barriers at 97.70/35, now revert to initial supports, ahead of 97.00 and 96.60, below which bears will take control.
Res: 98.27, 98.50, 99.00, 99.50
Sup: 97.70, 97.64, 97.35, 97.00