GOLD TECHS: Recovery Reinforces A Bullish Theme
- RES 4: $3600.0 - Round number resistance
- RES 3: $3578.0 - 2.000 proj of the Dec 19 - Feb 24 - Feb 28 swing
- RES 2: $3547.9 - 1.764 proj of the Feb 28 - Apr 3 - Apr 7 price swing
- RES 1: $3435.0/3500.1 - High May 6 / High Apr 22 and bull trigger
- PRICE: $3394.0 @ 07:22 BST May 7
- SUP 1: $3269.2/3202.0 - 20-day EMA / Low May 1
- SUP 2: $3167.8 - High Apr 3 and a recent breakout level
- SUP 3: $3164.3 - 61.8% retracement Apr 7 - Apr 22 upleg
- SUP 4: $3115.1 - 50-day EMA
Gold has recovered from its recent lows and this suggests the correction between Apr 22 - May 1, is over. A continuation higher would refocus attention on key resistance and the bull trigger at $3500.1, the Apr 22 high. Clearance of this level would confirm a resumption of the primary uptrend. Key short-term support has been defined at $3202.0, the May 1 low. A break of this level is required to signal scope for a deeper retracement.
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WTI TECHS: (K5) Fresh Cycle Low
- RES 4: $74.66 - High Jan 22
- RES 3: $72.91 - High Feb 11
- RES 2: $69.05/$72.28 - 50-day EMA / High Apr 2 and key resistance
- RES 1: $64.85 Low Mar 5 low and a recent breakout level.
- PRICE: $60.38 @ 07:07 BST Apr 7
- SUP 1: $59.39 - 2.000 proj of the Jan 15 - Feb 4 - 11 price swing
- SUP 2: $57.79 - 2.236 proj of the Jan 15 - Feb 4 - 11 price swing
- SUP 3: $56.81 - 2.382 proj of the Jan 15 - Feb 4 - 11 price swing
- SUP 4: $55.00 - Round number support
The impulsive sell-off in WTI futures continues to accelerate and last week’s move down resulted in the breach of a number of important support levels. The break reinforces a bearish threat and, despite being in oversold territory, signals scope for a continuation of the bear leg. Sights are on $59.39 next, a Fibonacci projection (pierced). Initial resistance is seen at $64.85, the Mar 5 low and a recent breakout level.
BUNDS: Another extremely Busy Overnight session
- It's another incredibly busy session across multi assets as Trump double downs on his Tariffs Yesterday, Bund saw a big 87 ticks upside Opening gap, but remains just short of Friday's high printed at 131.48.
- A clear break through that level would see 132.04 next.
- Similar story for the US Tnotes, the 10yr Yield gapped lower, but just short of 3.8534%, Friday's printed low.
- Estoxx (VGM5) has gapped lower on Global growth Risks, these are the worst moves since Covid, the contract has managed to found some support just ahead of the 4600.00 figure, printed a 4608.00 low, and at Current levels, the Cash Index will be set to open down another 2.78% in just over 40 minutes.
- There's no tier data for the session, and it is also a lighter Week overall, US CPI is the standout release on Thursday, BUT Tariff news will supersede Everything else.
- SPEAKERS: ECB Cipollone, Fed Kugler.
BRENT TECHS: (M5) Impulsive Reversal Extends
- RES 4: $77.75 - High Jan 20
- RES 3: $76.26 - High Feb 20
- RES 2: $72.31/75.47 - 50-day EMA / High Apr 2 and a bull trigger
- RES 1: $67.95 - Low Mar 5 and a recent breakout level
- PRICE: $63.80 @ 07:02 BST Apr 7
- SUP 1: $63.01 - Intraday low
- SUP 2: $61.97 - 2.236 proj of the Jan 15 - Feb 4 - 20 price swing
- SUP 3: $60.00 - Psychological round number
- SUP 4: $58.26 - 3.000 proj of the Jan 15 - Feb 4 - 20 price swing
Brent futures traded in a volatile manner last week and also traded sharply lower. The move down cancels a recent bullish theme. Price has traded cleared both the 20- and 50-day EMAs. Furthermore, the contract has breached $67.87, the Oct 10 ‘24 low. This signals scope for a continuation towards $91.97, a Fibonacci projection. On the upside, initial firm resistance is seen at $67.95, the Mar 5 low.
