Technical Analysis for Gold Price, Oil, DAX & More

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Gold price remains stuck in a bearish sequence of lower lows, lower highs since its head-fake above 1300. Further weakness is likely to bring into play the confluence of support by way of a trend-line rising up from December, the 200-day MA, and earlier-month low around 1260. Silver is postured similarly but with less clarity at this time. If the US dollar is indeed bottoming as it appears it is, then look for that to keep continued pressure on precious metals. But on their own technical merits they look headed lower unless the short-term bearish price sequence can be broken.

Gold: Daily (4-hr)

Copper recently reversed off a long-term top-side trend-line and is attempting to work its way back higher, but if it fails with force around the 3.25-mark then look for a deeper decline to develop. Crude oil has been sloppy, but faces stiff resistance over the 52-mark. It’s a long-term level and recent price action on the hourly time-frame shows the struggles oil is having.

(Equity indices portion starts here.)

The Nikkei has been an absolute beast with virtually no pullbacks since launching off the September low. It’s in rare territory, with the index at levels not seen since 1996. There is nothing to the left on the chart until the 1996 high of 22750. It’s tough to chase momentum here, but shorts are even less attractive without price action suggesting a pullback is likely to develop. The DAX is struggling around a pair of top-side trend-lines we’ve been discussing. It's undergoing a period of consolidation which looks ready to lead it higher, but must be careful of a failed breakout given the aforementioned trend-lines. (See chart below.) The S&P 500 gapped higher yesterday and failed, forming a bearish engulfing day. It might be a time for the index to rest or pull back. There is top-side trend-line support not far below around 2555/48 which needs to be clipped for a larger decline to take shape. The FTSE is caught between key levels, seeking resolution.

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DAX: Daily

---Written by Paul Robinson, Market Analyst

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