Oil rises ahead of OPEC+ technical meeting
Sizeable API deficit ahead of EIA’s more encompassing reading, retail bias shifts to majority short.
Gold Technical analysis, overview, strategies, and levels
Gold prices remained within its key pivot points yesterday, failing to aid breakout strategies to the downside on yesterday's 1st Support level, with a recovery in indices aiding the other leg of the trade involving hedging with the precious metal, as well as weakness in the US dollar in the FX market. Comments from the US Federal Reserve's (Fed) Brainard regarding shifting 'the focus of monetary policy from stabilization to accommodation' usually aids non-yielding assets like gold despite a rise in coronavirus vaccine hopes following Moderna’s announcement, and we’ll get more Fed speak later today and again tomorrow.
IG client* and CoT sentiment for Gold
The technical overview remains volatile, and on the sentiment front a few retail traders are range-trading the latest price oscillations, with yesterday's heavy long 71% bias dropping to 66%.
Gold chart with retail and institutional sentiment
Oil Technical analysis, overview, strategies, and levels
Although yesterday's 1st Resistance level wasn't breached with ease, oil prices managed to eventually cross above it to aid conformist buy strategies as the energy commodity's price continues to get tested at current levels within the $39-41 handle. In oil data, API's (American Petroleum Institute) reading showed a sizeable 8.3m drawdown, with EIA's (Energy Information Administration) more encompassing estimate up next expected to show a smaller deficit following last week's 5.7m surplus. However, while it's closely watched by oil traders, it's expected to be overshadowed by OPEC+'s technical meeting with regards to the current 9.7m barrel per day record output cut and whether it'll be extended into next month or drop down to 7.7m. That means any significant change could result in pivot point breaks, aiding breakouts over reversals should the move stick.
IG client* and CoT sentiment for Oil WTI
Going into today's fundamental event retail traders have shifted to a majority short 53%.
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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