Gold’s oscillates while oil finishes higher
Retail bias drops in oil as lack of trend entices traders into range-trading the energy commodity.
Gold Technical analysis, overview, strategies, and levels
After gapping higher, gold prices were in for a slightly lower finish oscillating near the highs as anticipation grows of whether it can make a new fresh high, or more importantly whether that high will stick or succumb to a reversal and a failure to offer upside significant upside momentum as has been the case for some time now. Testimony from the US Federal Reserve's (Fed) Chair Powell, as well as any updates on the US-China front given the latter's passage of its Hong Kong legislation are items to note.
IG client* and CoT sentiment for Gold
From a sentiment standpoint, retail long bias is down only a couple notches since the start of the week and still in heavy long territory at 67% as of this morning.
Gold chart with retail and institutional sentiment
Oil Technical analysis, overview, strategies, and levels
Oil prices enjoyed sizeable gains yesterday though have for now remained within its main weekly pivot points. This morning's Chinese PMIs (Purchasing Managers Index) that showed better than expected expansion is usually a positive factor, though fears of a second wave out of the manufacturing powerhouse, an extension of the first wave in the US, and a potential rise in US-China tensions are still factors to consider. API's (American Petroleum Institute) oil inventories reading for the US will be released tonight ahead of EIA's (Energy Information Administration) more encompassing estimate tomorrow.
IG client* and CoT sentiment for Oil WTI
Given the recent rangebound movement in the energy commodity, some traders have opted to range-trade instead, with yesterday’s gains taking majority long bias from 63% down to 56% as heavier percentage changes in sentiment occur on relatively smaller price movements.
Oil WTI chart with retail and institutional sentiment
*The percentage of IG client accounts with positions in this market that are currently long or short. Calculated to the nearest 1%, as of today morning 8am.
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