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Price Signal Summary - Trend Signals In Oil Futures Continue To Highlight A Downtrend

OUTLOOK
  • On the commodity front, {O4} Gold traded lower Monday, extending the pullback from $2088.5, the Dec 28 high. Price is trading ahead of the next key support at $2012.8, the 50-day EMA. A break of this level, if seen, would expose key support at $1973.2, the Dec 13 low. For bulls, clearance of $2088.5 would reinstate the bull cycle that started Dec 13. This would open $2097.1, 76.4% of the Dec 4 - 13 bear leg, ahead of key resistance and the Dec 4 all-time high of $2135.4.
  • In the oil space, bearish conditions in WTI futures remain intact and Monday’s sell-off reinforces the bear theme. Resistance to watch is $74.75, the 50-day EMA. The average was briefly pierced late December. A clear break of it would strengthen a bullish theme and highlight a stronger reversal. For bears, moving average studies remain in a bear-mode position, highlighting a downtrend. The trigger for a resumption of the trend is $67.98, Dec 13 low.

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