Crude oil and gold will be affected by the same technical levels we have been watching for awhile as we head into the new week. Though both commodities are susceptible to a break of recent trading ranges, gold's break looks imminent.
Commodities - Energy
Crude Oil Holding Below Resistance
Crude Oil (WTI) $74.55 +$0.77 +1.04%
Crude oil prices are currently higher, as risk assets across the globe rise on the back of momentum established on Friday. Though oil failed to break $75.50 resistance last week, the commodity may have ample opportunity to retest that key level this week, in the event risk sentiment continues to improve. Housing starts, building permits, and industrial production are the most important economic releases out of the U.S. in the coming days. On the downside, support levels are $72.00, followed by the key $69.50 level.
Gold is higher despite a rising Euro and improving risk appetite in general. Price is narrowing into a wedge formation and a break is imminent. The coming week will be telling with regard to near-term gold price action. A break of the rising trendline could lead to steep losses, while a break of $1250 resistance exposes much higher values near $1300.
Silver $18.33 +$0.08 +0.44%
Silver is up as prices grudgingly attempt to approach $18.50 resistance. It is unlikely that silver will break higher unless gold manages to make new all-time highs. Support levels are $18.00 and $17.50.
