Technical overview remains volatile in gold and oil
Breakout and momentum based strategies have outperformed as of late for precious metal and oil.
Gold Technical analysis, overview, strategies, and levels
While it has been tempting to rush into gold given the current geopolitical climate and uncertainty within the financial markets, the technical overview has remained volatile meaning breakout strategies in either direction on low liquidity in the markets have outperformed instead. The recent moves have been made due to fundamental geopolitical moves, and hence any undoing or reinforcement of those moves will dictate price moves here, and making technicals usually less relevant. While prices are expected to become more rangebound once the dust settles, traders here need to note any geopolitical updates.
IG client and CoT sentiment for Gold
In sentiment, retail bias remains heavy long and rising slightly, standing at 69% and less than extreme long bias held by larger speculative traders at 88% as per the latest CoT (Commitment of Traders) report.
Gold chart with retail and institutional sentiment
Silver Technical analysis, overview, strategies, and levels
As with gold, silver prices were also in for volatile movement, and in this case made a move above its 1st Resistance level before geopolitical updates sent its price below its main Support pivot points, testing its bull trend technical overview whereby its bull trend line is still holding, and nearly all its main technical indicators are still flashing green.
IG client and CoT sentiment for Silver
Retail bias isn’t changed, holding at an extreme long 88%.
Silver chart with retail and institutional sentiment
Oil WTI Technical analysis, overview, strategies, and levels
Despite relatively high-impacting data in the form of EIA's (Energy Information Administration) results of a 1.2M surplus and following API's near 6M drawdown the night before, the focus has been squarely on geopolitical tensions in a region the world is heavily reliant on when it comes to oil. There has also been more geopolitical news as Russia and Turkey calling for a ceasefire in oil-producing nation Libya, which in turn could result in greater oil supply should tensions there ease. The overview on both the daily and weekly remains volatile, as pivot points in the current tense atmosphere remain likelier than not to break on a lack of liquidity.
IG client and CoT sentiment for Oil WTI
As for the bias, retail traders recently shifted to majority long earlier this week, and the bias has surged from 55% to a heavy long 71%.
Oil WTI chart with retail and institutional sentiment
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