Technical overviews shift in precious metals in the short-term

Gold Technical analysis, overview, strategies, and levels

It’s been a strong week for gold prices, following months of relative oscillation prior. In the process, it’s daily outlook has shifted to a bull trend but where its price is at a mid-term resistance level, and where sell strategies should be initiated ideally after a reversal to avoid getting stopped out. Stronger risk appetite for equities usually translates into weaker prices for safe haven assets like gold. However, record highs for US indices has occurred combined with a weaker dollar, which has given gold (and other commodities and assets priced in dollars) a leg to stand on.

IG client and CoT sentiment for Gold

Retail bias while dropping remains in heavy long territories, down by 4% since last week to 66%.

Gold chart with retail and institutional sentiment

Silver Technical analysis, overview, strategies, and levels

As with gold, the shift on the daily outlook has been towards a bull trend, though in this case industrial demand for silver will also play a role. The gold/silver spread dropped for a third consecutive week, as silver outperforms compared to its precious metal cousin. Although a part of it is down to a weaker dollar, they have both outperformed against most of the remaining FX majors.

IG client and CoT sentiment for Silver

Yet, the rise in price has done little to tilt retail bias, which although dropped 2% remains in extreme long territories at 89%.

Silver chart with retail and institutional sentiment

Oil WTI Technical analysis, overview, strategies, and levels

Another week, another consecutive gain for oil prices, and taking its price above the last of its main long-term moving averages (MA), the 100-week MA. EIA’s (Energy Information Administration) larger than expected drawdown of 5.5M certainly helped, as did a drop in Baker Hughes US oil rig count. The daily outlook is a bull trend that’s stalling on a lack of intraday momentum, while the weekly’s outlook needs little at this stage to shift to a bull trend. Overall, it’s a question of whether 2020 will allow for further price gains in energy and whether OPEC+ cuts will extend to beyond the first quarter of next year.

Learn more about oil trading.

IG client and CoT sentiment for Oil WTI

As for sentiment, retail bias has moved 2% higher to a heavy short 69%, whereby short traders continue to await some form of retracement to unwind.

Oil WTI chart with retail and institutional sentiment

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