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Gold, Silver, WTI Crude Continue to Trade Sideways

Published 12/19/2023, 02:01 AM

Gold XAU/USD trades mostly sideways for 3 days as we consolidate Wednesday's big rally. Yesterday we held within Friday's range with a low for the day 4 points above support at the October and short-term 38.2% Fibonacci level of 2012/2008. 

Longs here today need stops below 2005.

If we continue lower, the best support I see for this week is at 2000/1995. Although there is no Fibonacci support here, price action and the 200 period MA on the 4-hour chart could attract buyers. Longs need stops below 1990.

Eventually, the market will probably refocus on lower interest rates and Gold will climb again. If we do bounce from 2000/1995 look for 2020/23, perhaps as far as 2027/29.  Above 2030 look for 2033 and 2038/41.XAU/USD-Daily Chart

Silver XAG/USD consolidated sideways but did find support at 2380/70 again yesterday and longs need stops below 2350.

Targets: 2420, 2440, 2460.XAG/USD-Daily Chart

WTI Crude January futures made a low for the day again at minor support at 7090/60 and longs worked perfectly if you tried the trade (despite the bear trend) with a bounce up to 7200/7250. The break above 7250 met strong resistance at 7350/7400.

We reversed from just above here at 7426. I think it is fair to say the levels worked. Prices then collapsed to 7250/00 which held the downside.  

So a bounce from here re-targets 7380/7420. A break above 7450 targets 7500/7520, perhaps as far as 7570/90. A break below 7200 retests support at 7080/40 and remember we are in a short-term bear trend so longs are risky on a 3rd test. 

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A break below 7010 should be a sell signal targeting 6970/50 and 6890/6860.WTI Crude Oil-Daily Chart

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