SCHATZ TECHS: (Z5) Resistance Remains Intact For Now
- RES 4: 107.348 50.0% retracement of Apr 7 - Sep 25 bear leg (cont)
- RES 3: 107.320 High Oct 17 and the bull trigger
- RES 2: 107.235 High Oct 22
- RES 1: 107.096/175 50-day EMA / High Oct 24
- PRICE: 107.025 @ 05:10 GMT Nov 7
- SUP 1: 107.010 Low Oct 30 and the bear trigger
- SUP 2: 106.995 Low Oct 8
- SUP 3: 106.965 Low Oct 6
- SUP 4: 106.920 Low Sep 25 and a key support
Schatz futures remain in consolidation mode. A short-term bear cycle remains intact - for now. The downleg that started Oct 17 is considered corrective and has allowed a recent overbought trend condition to unwind. Note that 107.014, 76.4% of the Sep 25 - Oct 17 bull leg and the next important support, has been pierced. A clear break of it would signal scope for a deeper retracement. Initial resistance is at 107.096, the 50-day EMA.
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WTI TECHS: (X5) Corrective Bounce
- RES 4: $76.89 - 2.764 proj of the Apr 9 - 23 - May 5 price swing
- RES 3: $74.79- 2.500 proj of the Apr 9 - 23 - May 5 price swing
- RES 2: $73.39 - High Jun 23 and a bull trigger
- RES 1: $66.42/68.43 - High Sep 29 and key resistance / High Jul 30
- PRICE: $62.30 @ 07:24 BST Oct 8
- SUP 1: $60.40 - Low Oct 2
- SUP 2: $57.50 - Low May 30
- SUP 3: $54.89 - Low May 5
- SUP 4: $54.10 - Low Apr 9 and a key support
WTI futures have recovered from the most recent low print - a correction. A bearish theme remains intact. Last week’s sell-off resulted in a move through key support and the bear trigger at $60.85, the Aug 13 low. Clearance of this level strengthens the bear threat and paves the way for an extension towards $57.50, the May 30 low. Initial firm resistance has been defined at $66.42, the Sep 29 high. Clearance of this level would highlight a reversal.
BRENT TECHS: (Z5) Bear Theme Remains Intact
- RES 4: $78.63 - 2.618 proj of the Apr 9 - 23 - May 5 price swing
- RES 3: $76.82 - 2.382 proj of the Apr 9 - 23 - May 5 price swing
- RES 2: $75.43 - High Jun 23 and a bull trigger
- RES 1: $69.87/71.20 - High Sep 26 / High Jul 30 and key resistance
- PRICE: $65.98 @ 07:21 BST Oct 8
- SUP 1: $64.00 - Low Oct 2
- SUP 2: $60.85 - Low May 30
- SUP 3: $58.50 - Low May 5
- SUP 4: $57.88 - Low Apr 9 and a key support
Brent futures continue to trade above their recent lows. A bearish theme in the contract remains intact and short-term gains are considered corrective. Last week’s sell-off saw the contract breach key support and the bear trigger at $64.20, the Jun 30 low. This strengthens a bearish theme and paves the way for an extension towards $60.85, the May 30 low. Initial firm resistance has been defined at $69.87, the Sep 26 high.
GOLD TECHS: Impulsive Rally Extends
- RES 4: $4113.5 - 2.618 proj of the May 15 - Jun 16 - 30 price swing
- RES 3: $4100.0 - Round number resistance
- RES 2: $4074.5 - 2.500 proj of the May 15 - Jun 16 - 30 price swing
- RES 1: $4037.1 - Intraday high
- PRICE: $4027.1 @ 07:28 BST Oct 8
- SUP 1: $3884.1 - Low Oct 6
- SUP 2: $3775.3 - 20-day EMA
- SUP 3: $3717.6 - Low Sep 24
- SUP 4: $3614.9 - 50-day EMA
A bull cycle in Gold remains in play and this week’s breach of $40000.0 reinforces the uptrend. The move higher maintains the price sequence of higher highs and higher lows. Furthermore, momentum studies highlight a condition known as momentum drag - where momentum remains in overbought territory and moves sideways - a bullish signal. Sights are on $4074.54, a Fibonacci projection. Support to watch is $3775.3, 20-day EMA.
