Gold has continued to move to the upside after setting a major high around 1611 USD on the 8th of January and slightly retracing.
Yesterday the price rejected back to the downside and closed very bearish as an indication that we will see further retracement towards previous horizontal resistance levels that will likely act as a support around 1516 and 1532 USD as well as area between 50-61.8% Fib retracement, from which a long position could be entered with a very good risk/reward potential. Afterward, the next major upside target of resistance can be seen as far as 1640 USD.
For now, however, best is to stay neutral and wait for further price action development as the overall trend is still bullish and trading against it would not be advisable.
GOLD Daily:
Silver has continued moving lower and saw a very large drop yesterday towards the previously mentioned support around 17.32 USD as well as 61.8% Fib retracement from the previous upswing in addition to 100 day moving average blue line.
Therefore, we can start to look for an entry once again as the price has retraced enough and looks to set a higher low. Currently, however, best would be to wait for further price action development with the expectation that the price will stabilize around the current price levels after such a volatile move to the downside as it prepares for the next upswing.
The next target can be seen around 19.65 USD and would mean a potential gain of around 12.65% from the current price as well as a good setup in terms of risk/reward.
SILVER Daily:
WTI continued to move lower in a very bearish momentum and has reached a previous major area of support around 50.6-54 USD as it currently trades around 53.4 USD.
For now, it is unclear whether a new low has been set as no significant rejection has been seen and we could see further downside in the upcoming days. If signs of rejection are seen, a long position could potentially be taken in the expectation that the several month range high around 60-64 USD will be tested again. Therefore, best is to stay neutral and wait for further price action development.
WTI Daily:
BRENT has also reached a previous major support area around 57-59 USD as it continued to move lower after breaking below several month ascending trendline as well as resistance/support area around 63.5 USD.
A slight rejection was seen yesterday, however, the price could still move lower and, therefore, best is to wait for further price action for now. Once signs of reversal are seen, a long position can be taken in the expectation that the 63.5 USD resistance will be retested, meaning a potential upside of around 6.1% from the current price.
BRENT Daily:
NAT GAS has continued consolidating for the past week after setting a new low around 1.79 USD and rejecting slightly higher towards the current price of 1.884 USD.
Since the price has extended quite a lot to the downside during the past weeks, a retracement is needed before we can consider shorting the market again. A potential area of resistance can be seen around the previous support of 2.05-2.2 USD and would serve as a good range from which to consider taking a short position once again.
For now, however, it is best to stay neutral and wait for further price action development.
NAT GAS Daily:
