Rally in Gold Tuesday Strengthens Bullish Trend Set-Up
A bearish theme in WTI futures remains in play following last week’s sharp sell-off and recent gains are considered corrective. The break on Nov 7 of support at $80.20, the Oct 6 low, highlights a stronger reversal and a continuation lower would pave the way for a move towards $74.26, the 76.4% retracement of the May 4 - Sep 28 bull run. Initial firm resistance has been defined at $83.60, the Nov 3 high. The recent pullback in Gold appears to be a correction and the trend remains bullish. Moving average studies are in a bull-mode set-up, highlighting a rising trend. A stronger resumption of gains would open $2022.20, May 15 high. The bull trigger is at $2009.4, the Oct 27 high. Note that support at the 50-day EMA, at $1939.4, has been pierced. A clear break of this average would undermine the bullish theme and expose $1908.3, Oct 16 low.
- WTI Crude down $0.36 or -0.46% at $77.76
- Natural Gas up $0.03 or +1.03% at $3.139
- Gold spot up $6.81 or +0.35% at $1971.05
- Copper up $1.1 or +0.3% at $369.1
- Silver up $0.22 or +0.96% at $23.3075
- Platinum up $2.53 or +0.28% at $892.06