Gold, Crude Oil, Silver – Technical Analysis – Price Action Update – 7th January
- Our last update noted that the price of gold had moved to a 50% corrective retracement area (last Wednesday) from the prior leg down, this XAU/USD technical level was just under the $1700 handle.
- Gold spot subsequently plummeted lower and ultimately moved below the key $1630 per ounce level on Friday morning, this area marked the lowest level found since last August, and a drop of over 3% in just 24 hours.
- The key technical confluence area around $1635 has been our main focus on gold; price moved marginally under the previous candle lows from late December (trapping weak shorts) and the technical area held on the daily closing basis, with a subsequent rally to $1655 seen at the New York close.
- Gold (XAU/USD) covered 157% of the average weekly range (averaged over 26 periods) last week.
- See our gold technical analysis page for further XAU/USD updates going forward.
Gold Daily Chart – XAUUSD – 7th January
- The 93.82 area has been a key technical point of interest for crude oil, as a price pivot zone, and the last test of this area was seen on 2/1/13.
- The 61.8% Fibonacci retrace of 100.51 > 83.95 is located just above this price structure prior resistance area.
- Price has subsequently moved lower and filled the gap area between the 91.60 area previous range highs and early January 2013 lows around 92.45.
- Last weeks Crude oil trading range was 86% of the average range over 26 weeks. Crude only managed to close marginally higher than the open and +33 pips on the weekly basis.
- The CRB index closed down 0.5%.
- We will be monitoring the price action around the 94.00 handle over the coming trading sessions.
Crude Oil Daily Chart – 7th January
- We also note that the price of silver has made a new low but subsequently closed back in the previous range and above the 61.8% Fibonacci retrace level.
- A small pinbar candle has formed, after a break under the recent choppy consolidation range; any further upside would be trading into the 30.70 area prior swing low.
- Last weeks silver trading range was 225 pips, this is 148% of the average range over 26 weeks. However, price only managed to close marginally higher than the open and +15 pips on the weekly basis.
Silver Daily Chart – XAGUSD – 7th January