Gold and Oil technical analysis (27/08/15)
GOLD TECHNICAL ANALYSIS – After a third day of lower-low and lower-high yesterday, gold seemed to establish a new daily range above its 20-day moving average at 1116.5. Downward momentum dominates the daily chart and upside potential seems limited until the next event risk unfolds. Gold bulls who are stuck with long positions may still find some reprieve with market volatility by then.
CRUDE OIL TECHNICAL ANALYSIS – WTI oil and Brent oil are climbing to test resistance levels at 39.89 and 44.50 respectively. The intraday chart below shows WTI oil in its narrow band, with Brent in white. Daily momentum signals in the daily chart have changed to an upturn after prices hit bottom on Monday, hinting at more advances ahead. Oil prices likely focus on the upside particularly if resistance levels are broken in the next few sessions.