The yellow metal continues to trend lower, as the downleg from last week’s recovery stalled at 1753, 38.2% of 1795/1728, also bear-trendline off 1795 peak, with acceleration through 1728 and our initial target at 1717, Fib 38.2% of 1590/1795 rally, extending losses to afresh low at 1713. Corrective action on oversold hourly conditions is seen preceding fresh weakness, with initial barrier at 1728, capping for now and near-term studies holding in the negative territory. Initial targets lies at 1700, psychological support and 1693, 50% retracement / 55 day MA, below which to spark further weakness for possible test of 1668, Fib 61.8% and 1662, 200 day MA. Only lift above 1740 breakpoint / trendline resistance, would provide temporary relief.
Res: 1726, 1728, 1740, 1753
Sup: 1721, 1713, 1700, 1693
Extension of downtrend from 35.36, 01 Oct peak, breaks below 32.00, psychological support / 55 day MA and penetrates daily Ichimoku cloud, with 31.67 low seen so far. As daily indicators slide into negative territory, the downside remains favored, with corrective bounce on oversold hourlies, facing good resistance at 32.50 zone, 50% of 33.27/31.67 downleg / 55 day EMA, where reversal should ideally occur, to keep bears in play. Immediate targets lie at 31.67 and 31.43, 50% retracement of 27.50/35.36 rally, ahead of more significant 31.00 zone, round figure support / 200 day MA. To avert immediate downside risk and improve near-term structure, clearance of breakpoint at 33.30 is required.
Res: 32.29, 32.47, 32.58, 32.87
Sup: 32.07, 32.00, 31.67, 31.43
CRUDE OIL (Dec)
Oil consolidates last Friday’s heavy losses, when the price tumbled from 93.50, near-term congestion top, to fresh one-week low at 89.83. Corrective bounce on oversold near-term studies regains 91.00 handle, however, overall negative tone on lower timeframes, sees the downside favored for now, with 92.00 zone, also Fib 61.8% of 93.50/89.83 downleg, expected to cap, as repeated failure at important 93.50 barrier weakened further the near-term structure, as the price attempts at lower boundaries of near-term range and daily indicators remain in negative territory.
Res: 91.30, 91.65, 92.00, 92.25
Sup: 90.37, 90.00, 89.83, 89.28