Oil recovers slightly but continues to test longs

Gold Technical analysis, overview, strategies, and levels

Yesterday’s price moves have kept gold's bull trend technical overview still alive, but though it breached yesterday's 1^st Resistance level on more than one occasion, it only offered some beyond its range before giving contrarian sell reversals the advantage by partially retracing back down. In all, its price has continued to flirt with higher highs, and in turn keeping its main technical indicators bullish as uncertainty fails to subside, and central banks continue to keep the printing presses (physical or digital) running.

IG client^* and CoT sentiment for Gold

That has given traders both large and small aa leg to stand on, with retail bias rising a notch to 73% but still well below that of larger CoT (Commitment of Traders) speculators at an extreme long 89%.

Gold chart with retail and institutional sentiment

Silver Technical analysis, overview, strategies, and levels

Silver prices managed to finish the session higher, but even combined with this morning's move higher it's still below yesterday's 1^st Resistance level in what has been mostly consolidatory moves testing its current bull trend technical overview that has been stalling heavily and needs little to shift with most of its main technical indicators neutral. The gold/silver ratio was a non-story, with gold only slightly outperforming yesterday and doing little to shift the ratio.

IG client^* and CoT sentiment for Silver

In sentiment, retail long bias has actually risen up to an extreme long 88%, anticipating further upside movement

Silver chart with retail and institutional sentiment

Oil Technical analysis, overview, strategies, and levels

Oil prices continued to take the attention, even if volatility dropped and hence while its price breached yesterday's 1^st Resistance level with some follow through this morning, the difference between the front and back month remains large and hence open to an eventual (or at least partial) convergence. Geopolitical tensions reintroduced a positive factor, and in oil date EIA (Energy Information Administration) registered a larger than expected 15m surplus, and once again bigger than that of API's inventory estimate which was 13.2m.

Learn more about oil trading.

IG client^* and CoT sentiment for Oil WTI

In sentiment, the recent moves have been a harsh blow to long traders, with retail bias dropping to a heavy long 74%. Long bias amongst larger speculative traders according to last week's CoT report was at an extreme long 79%, and we'll update that figure this Monday to see the extent to which those longs have been tested.

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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