Little has changed since yesterday, as oil and gold find themselves in their same respective trading ranges. Nevertheless, a break is likely in at least one of the commodities.
Crude Oil Still Holding Below Resistance
Crude Oil (WTI) $75.25 +$0.13 +0.17%
Crude oil prices are flat, as the commodity stalls right under recent $75.50 resistance. Prices looked poised to break the key level in Monday’s session, but a pullback in broad financial markets following a downgrade of Greek debt took some wind out of crude’s sails. With little in the way of news flow to drive prices, near-term direction is highly uncertain. In the event of a break, look for a move toward $80. On the downside, $72.00 and $69.50 provide support.
Gold Break Still Imminent
Gold $1220.30 -$0.95 -0.08%
Gold prices are little changed after falling slightly on Monday. As stated yesterday, price action is narrowing and a break is imminent. Resistance is at $1250 and support is at the rising trendline near $1210, followed by horizontal support at $1166.
Silver $18.28 +$0.06 +0.33%
Silver is up as the metal continues to consolidate. At the expense of sounding like a broken record, we find it unlikely that silver decisively breaks $18.50 resistance unless gold breaks out to new all-time highs above $1250.
