May 24, 2024 10:52 GMT
Price Signal Summary - Corrective Pullback In Gold
OUTLOOK
- On the commodity front, Gold traded lower yesterday, extending the pullback from its recent high. The trend structure remains bullish and the move lower appears to be a correction - for now. Moving average studies are in a bull-mode position and the move down is allowing an overbought condition to unwind. A resumption of gains would open $2452.5 next, the 2.618 projection of the Oct 6 - 27 - Nov 13 price swing. The 50-day EMA, at $2298.5, represents a key support. A clear break of it would be bearish.
- In the oil space WTI futures have pulled back from their most recent highs and the contract is trading lower today. A bearish theme remains intact. Price has recently traded below the 50-day EMA, strengthening a bearish set-up that highlights potential for a deeper correction. Scope is seen for a move to $75.64, the Mar 11 low. Initial firm resistance to watch is at $83.63, the Apr 26 high. First resistance is at $80.11, the May 20 high.
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