[Gold] has formed a small bear flag following small gains scored the past few days. Sentiment is turning more negative, and risk of a test of major uptrends going back to late 2005 are perceived as more likely. That measure is near $631 today. However, if new lows are not set between now and month end, projected monthly supports for June are forming on either side of $650, and that zone would first have to give way.
As noted yesterday among related markets, silver holds a head and shoulders top pattern which is just another way of saying the former bullish pattern of higher lows and higher highs has failed, leaving a lower high on the charts. Momentum studies have been coiling tightly for over six months in metals, and a bearish resolution could lead gold to the lower $600 band. Trend Intensity remains bearish in gold.
[Oil] scored an outside day up yesterday (higher highs and lower lows but a firm close), though unable to do much with it as seen in today's downturn. Still, most time frame studies (daily/weekly/monthly) are bullish or headed that way, worth keeping in mind. Daily supports in the $65.75-66.00 band are as yet unhit. Trend Intensity is still flat in oil, unable to develop a new signal. Daily resistance is at $67.50-75.
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