Oil technicals get tested, while precious metals finish higher
Retracement in equities aids demand for safe have metals, while energy was in for a retreat following API’s surplus.
Gold Technical analysis, overview, strategies, and levels
With a ‘risk-off’ approach in equities whereby investors are reducing appetite for riskier assets and a preference for safe haven products, gold's price managed to benefit slightly, and take its price higher for the session where a positive DMI cross (Directional Movement Index) has occurred. That aside, all its main technical indicators remain neutral on a lack of significant movement ahead of tonight’s US Federal Open Market Committee (FOMC) minutes for hints of what the prerequisites might be for any future rate cuts that could shift appetite for riskier assets, as well as that of the non-yielding precious metal.
IG client and CoT sentiment for Gold
Going into tonight’s event retail traders are holding a heavy long bias of 74%, while CoT (Commitment of Trader) bias stands at an extreme long 85%.
Gold chart with retail and institutional sentiment
Silver Technical analysis, overview, strategies, and levels
Like gold, it was a finish higher for silver's price, aiding in erasing much of the short-term negative bias it has been experiencing, but (as with gold) all its main technical indicators remain neutral, and with a non-trending ADX (Average Directional Index), with its price just beneath its 100-day moving average.
IG client and CoT sentiment for Silver
Retail bias here is extreme long at 92% rising a notch on yesterday morning’s bias, and going into tonight’s event both they and larger speculative traders according to the latest CoT report would prefer FOMC minutes to point to policy that would either weaken the greenback, hit risk appetite, or both.
Silver chart with retail and institutional sentiment
Oil WTI Technical analysis, overview, strategies, and levels
Oil's price was in for a big retreat, undoing much of its positive technical bias to cross beneath both its 100-day and 50-day moving averages, and breaking its bull trend channel on the daily as well. The catalyst was yesterday’s API (American Petroleum Institute) surplus of nearly 6M, with tonight’s EIA (Energy Information Administration) reading expected to show a slight 1.4M surplus. With most of its main technical indicators closely huddled, a technical signal will occur more frequently as the close proximity between price and its main indicators on the chart mean crosses may occur more often.
IG client and CoT sentiment for Oil WTI
In sentiment, retail bias has risen 11% to a heavy long 72% as range-trading shorts were enticed into taking profit while range-trading longs have initiated anticipating positive technical bias (in line with its technical overview).
Oil WTI chart with retail and institutional sentiment
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