Feb Comex highs and weekly trendlines converge at $699 as an objective for [gold], with still-higher levels attainable beyond there. The inverse relationship between gold and the dollar index bears watching, though, with long-term objectives nearing in the greenback as well as weekly/monthly momentum setups that are more in favor of it establishing a floor than continuing much lower.
With important lows set there in 2004, and the years 1991/92/95 before that, it is very important it get a grip soon. Turning attention back to gold, next weekly resistance is at $705; first monthly targets are near $718.
In [oil], charts are less clear as the market works to further its advance from mid-January floors. Measured retracements from last July's peak to the January lows shows the 38% level at $63.25 a pivotal zone, first as resistance and now more as support. 50% retracements at $66.66 have only been briefly exceeded on the way up, and momentum is a continuing issue here, with weekly readings still below neutral on May contracts, and barely above neutral on continuation charts.
With Trend Intensity recovering from its last trend signal and unlikely to be triggered soon, more range trading in the broad band of approximately $61.50-66.50 May is the most likely outcome.
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