Gold held onto 985 support and bounced. However currently the move higher is looking to be correctionary, and 994 is expected to hold.
987/985 remains a viable target for today. Sellers will be covering shorts to here. They will be looking to re-sell a break of 985. This would then provoke a move lower with 981 to 978 the immediate targeted area. Here again sellers will look to cover. Buyers will be sidelined for the time being as they feel a break of 978 sees 974 and this is where they would feel safer coming in to buy this market.
Now if 994 does break there is scope for a move higher... 998/1002 offers good short term resistance. Sellers will want to enter here. However they will not hold shorts if the market breaks 1002. A break above sees 1008/09 where you would once more join sellers, keeping stops over 1013.
We had expected any bounce in Oil to be capped at 67.58 and sure enough we halted at 67.54.
The outlook continues to remains weak today. Failure to break above 67.54/58 means a move back towards support at 66.60. If this fails to hold look for 66.01/65.95 next. A break below here sees prices heading for 65.41 down to 65.05. If we cannot hold here and we break below 64.95 it is likely we'll see 64.69/43 where buyers could prevail and a bounce back is possible. A break lower however targets 63.86/71 which again is good enough support to see buyers take over in the short term and push prices higher. However below here could take us down once again, all the way to 62.76/70.
Only a break above 67.58 allows bulls to charge higher to 68.36 and then on to 69.14. Do expect sellers to be ready to tackle the market here, confident they can take control and push prices lower again.
