Oil Stalls at Resistance, Gold and Silver Selling to Continue

Commodities - Energy

Oil Stalling at Resistance, Positioning Favors Losses Ahead

Crude Oil (WTI)       $78.87      -$1.44       -1.79%
Prices continue to stall ahead of resistance at $80.67, a former support level. Negative RSI divergence argues for a move lower in the near term, with initial support seen at the bottom of a rising channel set from the swing low established earlier this month. European shares are trading in the red following a disappointing German business confidence report and US equity index futures are lower, which bolsters the case for a downside scenario considering the percent change correlation between crude and the MSCI World Stock Index stands at a formidable reading of 0.88. The US Consumer Confidence report as well as inventory figures from the American Petroleum Institute headline the economic calendar.




Commodities - Metals

Gold, Silver Selling to Continue on Weak Risk Appetite

Gold       $1108.97      -$5.28      -0.47%
As expected, gold has started to edge lower from resistance at $1125.13, with prices targeting initial support at $1101.16. As with oil, the percent change correlation with the MSCI World Stock Index remains formidable, albeit slightly lower than yesterday (now at 0.74). This suggests the signs of weakness seen on European equity exchanges and in US stock index futures bolster the likelihood of the downside scenario.

Silver       $16.12      -$0.12       -0.75%
Silver has moved lower and is now testing support at the bottom of a rising channel set from the swing low set earlier this month, with a break below the $16.00 figure exposing $15.68. The percent change correlation between the cheaper precious metal and the MSCI World Stock Index is now at 0.75, so as with gold, the risk sentiment landscape is supportive of continued selling pressure.




For real time news and analysis, please visit http://forexstream.dailyfx.com

To receive future articles by email, please contact Ilya at ispivak@dailyfx.com