WTI Crude Oil & Gold Daily Analysis – July 4, 2017
WTI Crude Oil
On Tuesday Crude oil prices fell in Asia as the Fourth of July holiday in the U.S. with markets shut.
On Monday, crude oil futures completed higher for the eighth-straight session as latest data suggest that U.S. output could be narrowing.
Oilfield services firm Barker Hughes reported its weekly U.S. rig count that fell by 2 to a total of 756, ending a six-month trend of rising U.S. rigs.
As OPEC and its allies’ are aggressive to address the fundamental problem of oversupply amidst the recent rally in oil prices, experts expect that crude oil futures will continue their downtrend.
Technical Outlook
Crude Oil rallied straight eighth trading session and settled above $47, Crude oil next resistance would be $48.40 -$49.70, short term support trailing $46.30, next resistance floor prices at $48.40. I believe there is a high chance to break above the resistance line and then reach towards $48.40-$49 in the near term scenario. Usually this struggling can be expected on every occasion prices try to breakout.
Crude oil prices are currently under buyer’s control which is a positive momentum bias, so I expect that the rally will extend towards $49.
GOLD
Gold prices were noted to be floppy lower on Monday, pressured by a sharp uptick in U.S. bond yields in the wake of upbeat manufacturing activity indicating that U.S. economic growth to be robust.
Gold is positioned to make a negative start to the month, after manufacturing data fuelled U.S. rate hike prospects, underpinning a move higher in U.S. bond yields, lessening demand for gold.
Gold is susceptible to move higher in both bond yields and the U.S. dollar.
Technical Outlook
The next support will be $1210 -$1200, current trend momentum is negative as the RSI (relative strength index) moved lower with price action reflecting negative momentum, I won’t suggest buying until consolidating of bottoms.
Bullions under seller control which will be expected to reach short term target of $1200. Resistance seen at $1226 which might be a sell opportunity downside.
This article was originally posted on FX Empire