Technical Analysis of Metals & Energies – January 22nd, 2020

Technical Analysis of Metals & Energies – January 22nd, 2020

Gold

After setting a major high around 1611 USD on the 8th of January after a very volatile move to the upside we have seen further downside as the price looks to retrace the previous upswing from the low of 1445 USD to the high 1611 USD that resulted in a gain of almost 11.5%.

The target for support can still be seen around the previous highs of 1516 and 1532 USD in addition to 50-61.8% Fib retracement area around 1509-1528 USD.

Therefore, for now, it is best to stay neutral and wait for further price action development towards the support levels and first signs of a reversal back to the upside as the price is yet to retrace deep enough to consider a long position right now.

GOLD Daily:

Gold Daily Technical Analysis 22 Jan 2020

Silver

Silver has also made another higher local high as it peaked around 18.86 USD after reversing from a slightly lower low of 16.62 USD, which indicates that we will likely see the current retracement result in a higher low being made. This can, therefore, be used to enter a long position in the expectation that the price will look to test the 19.65 USD 2019 high.

A potential area where the retracement could end can still be seen around 17.3-17.7 USD as it is the area where 50-61.8% Fib retracement area is located in addition to 17.32 USD previous support/resistance level as well as 100 day moving average blue line at 17.6 USD.

For now, however, it is best to stay neutral and wait for further price action development it the form of a new higher low that would confirm the potential attempt for a trend reversal back to the upside.

SILVER Daily:

Silver Daily Technical Analysis 22 Jan 2020

WTI Crude Oil

WTI continues moving lower as it has moved lower once again after a small rejection back to the upside was seen around 57.5-58 USD. However, since further upside was rejected, we expect the price to continue falling towards the next support around 53-54 USD.

The price has moved too far from the previous swing high and, therefore, short position is not advisable and the best option is to stay neutral for now and wait for further price action development. Alternatively, if the price can continue holding above 100 and 200 day moving averages and set a new local high above 59.6 USD we expect further upside to be seen as the price likely looks to retest previous swing high.

WTI Daily:

WTI Crude Oil Daily Technical Analysis 22 Jan 2020

Brent Crude Oil

BRENT continues to trade with a very similar price action as WTI as it set also experienced a slight bounce from 63.5 USD support as well as 200 day moving average and currently looks to move lower once again.

Next major support target can be seen around 56-58 USD and would mean a considerable further downside, however, considering how much the price has moved lower during the past weeks, it would be best to avoid shorting the market until a clear break below the several month ascending trend line is seen with a stop placed just above the previous minor high of 66 USD.

BRENT Daily:

Brent Crude Oil Daily Technical Analysis 22 Jan 2020

Natural Gas

NAT GAS has moved lower significantly during the past week and has set a new several-year low around 1.79 USD as it continues to move towards the more than decade low of 1.579 USD.

Currently, however, the price has extended too far to consider shorting the market and a clear retracement is needed, preferably towards the previous major support area around 2.04-2.2 USD. Once this area is reached and we can see signs of a reversal back to the downside, a short position can be taken in the expectation that the next move will look to reach the 1.579 USD support, meaning a potential downside of around 25%.

NAT GAS Daily:

Natural Gas Daily Technical Analysis 22 Jan 2020

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