Crude Oil Rises Strongly, while Gold Falls
Crude oil broke higher on Tuesday on confidence in economic recovery from vaccines, ironically the dollar also rose.
The WTI has risen significantly during the trading session on Tuesday and has hit $55. A possible break above that level would represent a very positive sign since the market has been stopped for a long time. It would also be necessary to do it with confidence to increase by another $2.50 to the level at $57.50. On the other hand, if the market begins to show signs of exhaustion, it may fall to the midpoint of the five consolidation range that we are trying to abandon.
The Brent markets have also risen significantly during the trading session on Tuesday and have managed to break above the $57.50 level. Analysts believe that declines will offer buying opportunities and that the market could rally to the $60 level. In that scenario, they don’t rule out the occasional drop along the way. Below the $55 level is a kind of bottom for this market and the exponential moving average at 50 days also seems to be approaching that region to reinforce the support it offers. As for the possibility of breaking above the $60 level, that would be another completely different question, analysts say. However, they believe that we are certainly going to approach that region and that the oil market will remain bullish in the short term. Despite this, sooner or later, we will begin to give importance to the fact that the economy continues to go through difficult times.
Gold falls back to 200-day EMA
The gold markets have broken down significantly during the trading session on Tuesday, losing about 1.5%. The precious metal continued to fall towards the 200 day EMA, which will offer a significant amount of support. Analysts think that gold could return to the consolidation zone it has been in for some time.
April gold futures decreased $19.70 at $1,844.00, and March Comex silver was last down $27.72 at $1.718 an ounce.
Bulls’ next upside price objective for February futures is to produce a close above substantial resistance at $1,900.00. Bears’ next downside price objective is to push futures prices below solid technical support at the January low of $1,804.70. First resistance is seen at $1,866.30 and then at last week’s high of $1,878.90. First support is seen at $1,840.00 and then $1,832.40
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