Gold remains under pressure and a break of 985 sees 981 quite quickly this session. Here sellers will be expected to cover. They will re-instate shorts on a break of 978. A loss through here keeps the bias to the downside and sets up a move lower for 974 initially. Shorts to be covered. Buyers are expected to enter here and hold the market up until a correction has taken place, back towards 981 break point. However...a break of 974 would negate any retracement and would lead this lower for 964. This would be a huge move for Gold from the highs, and thus the market is expected to hold this point and continue with the uptrend.
Resistance remains at 998. If the buyers claw their way back above here there is scope once more for the 1007/09 resistance. Sellers will be waiting here and they will only reverse shorts if this is above 1013.
Oil declined further, holding just a few ticks above 65.01 support. The longer term outlook continues to look very negative as we have been saying for a while and our first target on the downside remains 61.38.
Very little in the form of a bounce on Friday and the outlook remains weak today. A move back below support at 64.95/65.01 is likely to take us to 64.69/43 where buyers could prevail and we could witness a decent bounce back. If this level fails to hold then we could head further south to 63.86/71 which again is good enough support to see buyers take over in the short term and push prices higher. However a break lower could take us down once again, all the way to 62.76/70.
Any bounce today is only going to gain strength above 66.70 which should allow prices to rise to 67.58 but maybe no higher. However above here sees a good opportunity for sellers at 68.36 and once again at 69.14.
