Gold on track inside bearish channel

There is a bounce from $1,210 that bring gold price near $1,220. Fortunately for the bear, the price stays inside the bearish channel and near $1,220. If the price could not close above the bearish channel, it looks like gold will continue bounce lower and test $1,200.

Short position from $1,220 might result in a successful trade, and the trade will have stop above daily SMA 200 or the previous high around $1,228.

Today critical level to watch:

Support: $1,214, $1,210, $1,200

Resistance: $1,220, $1,235, $1,240, $1,244

Silver re-testing $16.00 handle

The downward pressure in silver diminish, and the price starts moving up to test the $16.00 broken support level. The odds are tilted to the bear and traders suggested looking for a short position as soon as the bearish pattern formed. The target of the short position is the support trendline followed by $15.00 handle.

Today critical level to watch:

Support: $15.61, $15.00

Resistance: $16.00, $16.50, $16.80, $17.00

Crude oil halted drop under production revision

U.S government revised oil production value for next year, and the number shows sharp reduction which incites rally in crude oil prices. The crude oil prices are hanging at $45.43 after touching $46.46. Despite the sharp up move, it looks like traders not convinced the reduction will help oversupply in the long-term.

Goldman Sachs warned crude oil prices could fall below $40 if Shale drilling continue strong. It is the time for oil to search for equilibrium and traders will gauge if the market takes the $45 hint in oil.

Today critical level to watch:

Support: $45.30, $44.75, $44.26, $43.91, $43.15, $42.05

Resistance: $46.00, $46.45