Gold, silver and oil experience wild swings in volatile session

Gold Technical analysis, overview, strategies, and levels

Gold's volatile technical overview hasn't changed, especially with risk-related flows dominating the financial markets and infusing volatility into the safe haven precious metal. However, that means pivot points have had a greater likelihood of breaking, and in turn conformist breakout strategies have outperformed – in this case to the upside but for limited profit-taking. All its main technical indicators are on the daily are flashing green, more so than the weekly which in turn faces increased volatility as weekly pivot points have also been broken.

IG client^* and CoT sentiment for Gold

In sentiment, retail bias has risen to a heavier long 64%, far below that of CoT (Commitment of Traders) larger speculators who initiated those longs at far lower price levels.

Gold chart with retail and institutional sentiment

Silver Technical analysis, overview, strategies, and levels

The gold/silver ratio rose back up to finish in the green for a third consecutive session. That's not to say silver isn't enjoying bullish moves however, with its daily technical overview showing more signs of a bull trend but where the source of the movement hasn't been technical, and where contrarian reversals can’t be ruled out on any increased volatility forcing its price back down.

IG client^* and CoT sentiment for Silver

In sentiment, retail bias here is an extreme long 88% and unchanged, similar to platinum’s 89% long bias and standing in stark contrast with a full 100% short bias in palladium.

Silver chart with retail and institutional sentiment

Oil WTI Technical analysis, overview, strategies, and levels

The spread of the coronavirus has been a real dent for oil prices, suffering a weekend gap lower breaking its Weekly 1^st Support level. Most of its main weekly technical indicators are neutral, while on the daily its ADX (Average Directional Index) is showing an ongoing propensity to trend, as the oil market goes back into bear market territory on fears of a real slowdown in economic growth, and where on the charts the 50-day is on the verge of crossing below the 100-day moving average. The first of this week's oil data will be released, with API (American Petroleum Institute) tonight, though expect risk-related flows to continue to influence where the energy commodity's price will settle.

Learn more about oil trading.

IG client^* and CoT sentiment for Oil WTI

Retail bias remains in extreme long territory, rising further to 81%.

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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