Gold bullish engulfing close above $1,280

Gold made unexpected bounce in the previous trading day and closed above $1,280. This event leads the precious metal to stalemate situation and suggested traders to continue observe price movement. Gold currently lower below $1,280 and showing lack of direction.

Will the precious metal continue its downward movement toward the daily SMA 200 and the red trendline?

Today critical level to watch:

Support: $1,258, $1,250

Resistance: $1,280, $1,300, $1,313.22, $1337, $1,390

Silver positive development for the bull

Silver closed outside of the triangle pattern and on the upside. The close is bullish and currently the bear testing the breakout point. If the bull could hold the price from falling inside the triangle, there is chance silver will continue higher toward $17.50. There is no conclusion yet on where silver will move next. Traders could place long position near $17.00 with a stop below $16.80.

Today critical level to watch:

Support: $17.00, $16.80, $16.50, $16.00

Resistance: $17.20, $17.50, $17.73

Crude no stop sign

The price of crude oil blasted upside without any stop after crown prince of Saudi announce arrest of 11 princes and ministers. The arrest happens after the King announces formation of Anti-Corruption committee. The reform which happens in Saudi Arabia seems to bring much hope for crude oil as the price continues higher. Crude oil was getting near to $60.00 where less than two weeks ago it traded below $52.40.

On the weekly chart, it looks like the upward path cleared and crude oil ready to challenge area between $60.00 – $62.50. It is better for traders to watch how price reacted near the resistance and jumped in short position after weakness confirmed.

Today critical level to watch:

Support: $56.00, $55.23, $54.50, $52.40

Resistance: $60.00, $62.50.