Gold and Silver remain trapped in sideways consolidation patterns

XAU/USD

Gold headed higher yesterday to recover 2 days of losses.

As is typical in a sideways market, prices reversed again & won back losses to retest last week's high at last week's high at 2662/65, with a high for the day exactly here again.

At this stage there is no indication of a trend starting so we make do with the choppy conditions, where prices keep reversing throughout the day.

As you know, moving averages & Fibonacci levels are of no use in these conditions.

Minor resistance at last week's high at 2662/65 is key to direction today

Bulls need a break above here to target 2672/75, perhaps as far as 3 month trend line resistance at 2688/92.

Failure to beat last week's high at 2662/65 saw prices reverse quickly again to 2642.

Minor support at 2635/30.

A break below 2630 can target 2625/23, perhaps as far as this week's low at 2616/14.

There's a very short term trend line at 2610/07 which may offer support today but longs need stops below 2604.

We must wait for a breakout of the sideways pattern but I expect this to take some time - could be a couple of weeks.

XAG/USD

Silver remains unable to sustain a move in 1 direction for long in the erratic, random sideways pattern.

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

We could find support at 2690/80 (a low for the day here yesterday) but longs need stops below 2960.

A break below 2660 risks a slide to 2925/20.

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

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

WTI Crude February future

Last session low & high: 7311 - 7453.

WTI Crude could also begin trading in a sideways range.

We  made a low for the day at support at 7320/00 in the very early hours of the morning but longs need stops below 7275 if the level is retested today.

A break lower risks a slide to 7210/7190.
There is likely to be resistance again at 7465/85 & we did make a high for the day just a few tocks below here yesterday.

However on a break above 7500 look for 7555/65. In overbought conditions this may be as far as we can go but shorts need stops above 7605.