Oil prices finish higher despite API surplus

Gold Technical analysis, overview, strategies, and levels

It was another day lacking pivot point action for conformist and contrarian pivot point traders, as gold prices continue to stall near the highs in moves that will likely entice traders into range-trading before an eventual trend move, and testing longs awaiting further upside momentum. Geopolitical tensions have failed to subside, but if equities continue to post gains and the economy slowly reopens it may test demand for the precious metal at a time when liquidity is more sought after for business and household survival.

IG client^* and CoT sentiment for Gold

In sentiment, retail bias is little changed at a heavy long 73%, well below that of larger speculative traders as of last Tuesday whose bias stood at an extreme long 92% anticipating further price gains.

Gold chart with retail and institutional sentiment

Silver Technical analysis, overview, strategies, and levels

Another day, another rangebound session for silver prices befitting its current consolidatory technical overview. In percentage terms, silver outperformed against gold which took the gold/silver ratio slightly lower, but overall the two have been locked within relatively narrow ranges and enticing more rangebound trading. Its price is just below its 50-day moving average, and is still below all its main moving averages combined with a trending ADX (Average Directional Index) that hasn't given traders a trade in either direction just yet.

IG client^* and CoT sentiment for Silver

It continues to test extreme long retail traders whose bias as of this morning stood at 88%, awaiting an eventual move higher to be able to unwind those longs in profit, especially since the bulk of them have been initiated at far higher price levels.

Silver chart with retail and institutional sentiment

Oil Technical analysis, overview, strategies, and levels

It was a big move in oil prices yesterday that took it well beyond yesterday's 1^st Resistance level to aid conformist breakout strategies in line with its current volatile overview where pivot points on both sides have been at greater risk of breaking. Since then it has partially retraced, and an API (American Petroleum Institute) surplus late last night of 8.44m doesn't help even if it was smaller than the week before. EIA (Energy Information Administration) is up next expected to show a similar 8.5m increase, as the energy commodity's price is just below its 50-day (and other main long-term) moving averages but above all its short-term moving averages.

Learn more about oil trading.

IG client^* and CoT sentiment for Oil WTI

In sentiment, retail bias has risen instead, now at a moderate 58% and well below that of larger speculative traders holding an extreme long bias of 83% as of last week.

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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