Gold weak bounce

The price of gold undergoes bullish correction after the precious metal hit $1,260 – $1,265 support area. Although it is bullish, the risk of breakdown persists as long as gold stick near the level. The bull needs an upward bounce and breakout above $1,280 to change the trend to bullish. On the other hand, the bear only needs a lower low below $1,260 to resume the trend while holding $1,280 against the bull.

Today critical level to watch:

Support: $1,265, $1,260, $1,250

Resistance: $1,280

Silver $16.50 retest on the card

Silver breakout below the black triangle pattern spells a bearish continuation. On the lower level, $16.00 is the target of the bearish move. However, the bear needs to maintain the price below $16.50 and trendline while retest of the broken level happens. Traders could look for short position when retest of the broken level result in rejection.

Today critical level to watch:

Support: $16.00

Resistance: $16.50, $16.80, $17.00

Crude oil priced in reaction

Crude oil skyrocket from $65.00 and closed the week near $70.00 resistance. Extreme bullish reaction happened despite the OPEC decision to crank up production in the response of diminishing supply. From fundamental side, Venezuela crisis and Iran sanction by the U.S create a hole in oil supply. Analysts also pessimistic OPEC could crank up production to 1 million barrels per day (bpd) and expect two third of the target achieved.

It is a good sign for oil bull, and crude oil might break above $70.00 soon.

Today critical level to watch:

Support: $66.00, $65.00, $62.80

Resistance: $70.00