Gold price falters but oil price bounce leaves downtrend intact
The recovery in risk appetite has seen gold hit hard, and while oil has managed to rally 2%, this has made little impression on the current downward trend.
Gold suffers bearish turn
The January rally in gold has run its course, with the demise of bullish sentiment apparently proved with the sharp turnaround this morning.
After breaking below trendline support and the 200-hour simple moving average (SMA) at $1573, the price hit a nine-day low at $1550. The modest overnight bounce to $1560 then reversed, creating a lower high, which looks set to continue if the price drops below $1550.
WTI’s downtrend goes on
WTI is making another attempt to rebound from support around $50.00, but on the hourly chart the sequence of lower highs and lower lows continues.
Bulls will need the price to establish a new intraday higher high above $52.00 and a higher low above $50.00 to provide an expectation of even a short-term rebound in price. Below $49.50 the price could struggle to find support, with the December 2018 low at $42.40 the next big level to watch.
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