Back
20 Jun 2013
Commodities Brief: Precious metals suffer steep declines
FXstreet.com (Barcelona) - The precious metals suffered steep declines today, with gold closing down 1.24% to finish at 1350 while silver gave back 1.62% to close at 21.25.
Oil fails to take out $100
After trading as high as 99.21 at one point in the day, the impressive five day win streak oil had been on finally came to a halt with the commodity declining 0.68% to finish at 98.15. From a technical perspective, the set up on the daily chart remains constructive with price sitting above both the 9 and 20 dma’s. The RSI (14) is consolidating just above the 60 level and maintaining the bullish zone between 40 and 80. It will be important for the oil bulls to step should oil continue to decline towards the 97.30-97.00 support zone. This was previous resistance from the downtrend line oil closed above last week.
Bearish technical set up not helping gold and silver
The technical set up on both gold and silver continued to deteriorate today, with further downside a possibility after key support levels were breached. Gold closed below an upward sloping support trend line at 1379 yesterday which confirmed a massive ‘pennant’ continuation pattern which had been forming on the daily chart since mid April. The measured move target for this pattern is all the way down near 1211, with a close back above 1379 needed to negate the development. Initial support sits at 1335 (support on daily chart), while first resistance sits at 1350 (previous support, now resistance on daily chart). As for silver, the below the bottom end of the recent trading range (located at 21.35) also sets the wheels in motion for more declines, with a short term measured move target currently sitting at 20.60.
Oil fails to take out $100
After trading as high as 99.21 at one point in the day, the impressive five day win streak oil had been on finally came to a halt with the commodity declining 0.68% to finish at 98.15. From a technical perspective, the set up on the daily chart remains constructive with price sitting above both the 9 and 20 dma’s. The RSI (14) is consolidating just above the 60 level and maintaining the bullish zone between 40 and 80. It will be important for the oil bulls to step should oil continue to decline towards the 97.30-97.00 support zone. This was previous resistance from the downtrend line oil closed above last week.
Bearish technical set up not helping gold and silver
The technical set up on both gold and silver continued to deteriorate today, with further downside a possibility after key support levels were breached. Gold closed below an upward sloping support trend line at 1379 yesterday which confirmed a massive ‘pennant’ continuation pattern which had been forming on the daily chart since mid April. The measured move target for this pattern is all the way down near 1211, with a close back above 1379 needed to negate the development. Initial support sits at 1335 (support on daily chart), while first resistance sits at 1350 (previous support, now resistance on daily chart). As for silver, the below the bottom end of the recent trading range (located at 21.35) also sets the wheels in motion for more declines, with a short term measured move target currently sitting at 20.60.