Commodities 18.11.2016

Commodities 18.11.2016

GOLD
Spot Gold eventually broke below $1210 support which marked the floor of four-day consolidation and fresh weakness approached key med-term support at $1200 (30 May low). Firm break here could produce further significant weakness that has been signaled by completion of asymmetric weekly H&S pattern, as the neckline at $1220 was taken out on Thursday.
Strong dollar and rising hopes of US interest rate hike in December keep US rte sensitive gold under strong pressure.
Daily indicators continue to point lower in oversold territory and support bearish scenario, as the yellow metal is on track for the second straight bearish weekly close.
Loss of $1200 handle could extend weakness to $1171 (Fibo 61.8% of larger $1046/$1375 rally.
Former higher base at $1210 marks immediate resistance, followed by broken H&S neckline at $1220, while the upper boundary of near-term consolidation at $1232 marks breakpoint.

Res: 1210; 1220; 1232; 1240
Sup: 1200; 1190; 1181; 1171

gold-18-11

US CRUDE OIL
Oil price rebounds after brief probe below daily cloud base at $45.42 which contained downside attempt of past two days. Spike below cloud base was limited above next key support at $45.02 (daily Tenkan-sen), loss of which would further weaken near-term structure.
Meantime, fresh bounce offsets negative impact from bearish candles with long upper shadows, posted in past two days. Regain of Thursday’s spike high at $47.10 would improve near-term structure for possible attack at the upside pivot at $47.58 (daily Kijun-sen line) and resumption of recovery rally from $42.94 low, on firm break higher.
Res: 46.68; 47.10; 47.58; 47.82
Sup: 45.17; 45.02; 44.64; 44.07

crude-oil-18-11, Market Analysis