Oil to Continue Tracking Higher.

The ‘Black Gold’ has risen to levels last seen in November thanks to production cuts, which have contributed to oil’s recent strong movement. As a result of supply reductions mostly driven by Saudi Arabia and Russia, traders have flooded the market. Riyadh and Moscow are scheduled to declare their next steps in the coming days, and most investors anticipate that the cuts will be prolonged. The industry is also banking on China’s continued strong demand.

Before additional Fed indications, gold prices were flat.

In the absence of any clear clues, gold prices barely moved on Tuesday, while the dollar and Treasury yields held firm ahead of this week’s series of Federal Reserve speakers.

The yellow metal experienced a significant run-up over the previous two weeks but has since found it difficult to advance, particularly since the dollar and yields have held steady despite indications of slowing U.S. economic growth.

Investor interest in gold has been restricted due to expectations that the Fed will maintain rates at higher levels for an extended period.

Copper is down amid conflicting China signals and expected trade data Tuesday saw no change in the price of copper among industrial metals as a result of a stable dollar.

Gold is trading down (0.39%) at 1930.47, Silver is down (1.75%) at 23.51, Brent Crude Oil down (0.72%) at 88.36, and WTI Crude Oil down (0.35%) at 85.25.

WTI CRUDE OIL: TECHNICAL OVERVIEW

Exponential Moving Average

• EMA 5: The 5-day EMA stands at 85.54, indicating a Sell signal.
• EMA 20: The 20-day EMA is at 83.68, signalling a Buy sentiment.
• EMA 50: The 50-day EMA currently sits at 81.99, suggesting a Buy indication.

Simple Moving Average

• SMA 5: The 5-day SMA shows a value of 85.66, reinforcing the Sell recommendation.
• SMA 20: With a value of 83.14 the 20-day SMA also supports a Buy sentiment.
• SMA 50: The 50-day SMA registers at 81.17, affirming a Buy indication.

RSI (Relative Strength Index)

The RSI, calculated over a 14-day period, stands at 70.71, signifying a positive signal.

Stochastic Oscillator

The %K value of the Stochastic Oscillator suggests a Neutral stance.

Resistance And Support Levels

• Resistance: The resistance level is observed at 86.06
• Support: The support level is identified at 84.41

Summary And Trade Suggestions

In summary, the technical analysis of WTI Crude Oil points towards a Buy sentiment. Considering the indicators, moving averages, and oscillators, it seems favourable for traders to enter a long position.

Trade Suggestion:

• Entry Point: 86.42
• Take Profit: 88.98
• Stop Loss: 84.50

GOLD: TECHNICAL OVERVIEW

Exponential Moving Average

• EMA 5: The 5-day EMA stands at 1937.46, indicating a Sell signal.
• EMA 20: The 20-day EMA is at 1934.54, signalling a Sell sentiment.
• EMA 50: The 50-day EMA currently sits at 1926.52, suggesting a Buy indication.

Simple Moving Average

• SMA 5: The 5-day SMA shows a value of 1938.78, reinforcing the Sell recommendation.
• SMA 20: With a value of 1936.42 the 20-day SMA also supports a Sell sentiment.
• SMA 50: The 50-day SMA registers at 1916.04, affirming a Buy indication.

RSI (Relative Strength Index)

The RSI, calculated over a 14-day period, stands at 51.28, signifying a positive signal.

Stochastic Oscillator

The %K value of the Stochastic Oscillator suggests a Negative stance.

Resistance And Support Levels

• Resistance: The resistance level is observed at 1945.33
• Support: The support level is identified at 1931.33

Summary And Trade Suggestions

In summary, the technical analysis of gold points towards a Sell sentiment. Considering the indicators, moving averages, and oscillators, it seems favourable for traders to enter a short position.

Trade Suggestion:

• Entry Point: 1926.66
• Take Profit: 1911.94
• Stop Loss: 1938.87