GOLD TECHS: In Retracement Mode

The observance of Epiphany is set to thin out liquidity in Europe today, with the likes of Austria, Croatia, Finland, Greece, Italy, Slovakia, Spain & Sweden, as well as some German & Swiss regions, observing the holiday.

• Note that this means that German states of Bavaria and Baden-Württemberg will not report state-level CPI data this morning

• RES 4: 7080.92 0.764 proj Nov 21 - Dec 11 - 18 price swing  
• RES 3: 7021.79 0.618 proj Nov 21 - Dec 11 - 18 price swing
• RES 2: 7014.00 High Oct 30 and the bull trigger
• RES 1: 6994.00 High Dec 26   
• PRICE: 6955.50 @ 07:15 GMT Jan 6
• SUP 1: 6865.03 50-day EMA
• SUP 2: 6771.50 Low Dec 18 and a key support 
• SUP 3: 6684.50 Low Nov 24  
• SUP 4: 6583.00 Low Nov 21 and a reversal trigger  

A recent pullback in S&P E-Minis appears corrective. A key near-term support has been defined at 6771.50, the Dec 18 low. Clearance of this level is required to signal scope for a deeper retracement and would also highlight a possible short-term reversal. For bulls, sights are on key resistance at 7014.00, the Oct 30 high. Clearance of this hurdle would confirm a resumption of the primary uptrend.

• RES 4: $70.16 - High Jun 23 and a key medium-term resistance 
• RES 3: $64.97 - High Sep 26
• RES 2: $61.25 - High Oct 24 and a key resistance  
• RES 1: $58.46 - 50-day EMA    
• PRICE: $58.07 @ 07:08 GMT Jan 6
• SUP 1: $54.89 - Low Dec 16
• SUP 2: $54.71 - Low Apr 9 and a key support
• SUP 3: $53.77 - 1.764 proj of the Jul 30 - Aug 13 - Sep 26 price swing
• SUP 4: $52.27 - 2.000 proj of the Jul 30 - Aug 13 - Sep 26 price swing   

The trend condition in WTI futures is unchanged, it remains bearish and recent gains are considered corrective. Moving average studies are in a bear-mode position, highlighting a dominant downtrend. A resumption of the bear leg would signal scope for a move towards $53.77, a Fibonacci projection. Key short-term resistance is $61.25, the Oct 24 high. First resistance is at $58.46, the 50- day EMA.