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CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Oil plummets further into bear market territory, gold and silver retrace

Oil and silver retail bias in extreme long territory, gold long bias rises.

Oil Pump Source: Bloomberg

Gold Technical analysis, overview, strategies, and levels

Gold prices were in for a bit of a retreat yesterday as the US dollar relatively outperformed in the FX market, yet that did little to undo its current bull trend technical overview on both the daily and weekly that has been buoyed by recent fundamental factors as no breakthrough has been visible on the coronavirus front just yet. All its main technical indicators continue to flash green on both the daily and weekly chart, but where the gains have been gradual and offering little in terms of buy breakout opportunities intraday.

Gold Technical Indicators Source: IG charts

IG client* and CoT sentiment for Gold

Retail bias remains in heavy long territory, rising 4% to 70%.

Gold sentiment Source: IG charts

Gold chart with retail and institutional sentiment

Gold Source: IG charts

Silver Technical analysis, overview, strategies, and levels

More so than gold, silver prices were also in for retracement, and the bull trend technical overview on the daily is showing less signs of holding compared to its precious metal cousin, and needing far less to shift to a more consolidatory outlook. Furthermore, in the FX market the US dollar was a relative outperformer, which has a tendency to hurt the precious metal priced in dollars, and as such in the absence of any further factors silver prices were in for an inverse move lower. Its weekly outlook is more consolidatory but showing long-term positive technical bias, while the daily its price is struggling to breach its short-term resistance level.

Silver Technical Indicators Source: IG charts

IG client* and CoT sentiment for Silver

Silver sentiment Source: IG charts

Silver chart with retail and institutional sentiment

Silver Source: IG charts

Oil WTI Technical analysis, overview, strategies, and levels

While filling the weekend gap (again) is a positive sign, far more will be needed to undo the current heavy negative technical bias experienced by oil prices which slid later in the session, and where its weekly and daily is expected to be more fundamentally affected by coronavirus fears and its affect on the travel industry and expected future growth as opposed to technical indicators. OPEC+ may have an emergency meeting today/tomorrow, so expect any results to keep oil prices volatile, with Russian and Saudi leadership confirming readiness to cooperate within the OPEC+ format in hopes of placing a floor on recent prices moves. We'll get the first of oil data this evening in the form of API's (American Petroleum Institute) oil inventories change, with last week's 4.3M deficit differing significantly from EIA's (Energy Information Administration) 3.5M surplus.

Learn more about oil trading.

Oil Technical Indicators Source: IG charts

IG client* and CoT sentiment for Oil WTI

Oil sentiment Source: IG charts

Oil WTI chart with retail and institutional sentiment

Oil Source: IG charts

* The percentage of IG client accounts with positions in this market that are currently long or short. Calculated to the nearest 1%.

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This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

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