GOLD

Spot gold probed below psychological $1200 support on extension of yesterday’s strong fall that accelerated after repeated upside rejection at $1219 barrier. Bearish Engulfing pattern that was formed on yesterday’s fall, weighs on near-term structure and sees risk of further easing. Return below daily cloud that generated initial signal of false break into the cloud, adds on building downside pressure. Firm break below pivot at 1195 (daily Tenkan-sen) is needed to signal further easing that may extend towards $1181 (Fibo 38.2% of $1122/$1219 upleg). Falling daily cloud’s base (currently at $1208) offers strong resistance and downside pressure is expected to persist while the latter stays intact. Alternative scenario requires regain and break above $1219 barrier to signal bullish resumption.

Res: 1208; 1216; 1219; 1230
Sup: 1200; 1195; 1187; 1181

US CRUDE OIL

The downside remains under pressure after yesterday’s bearish acceleration that dipped to $50.89, just above strong support and target at $50.70.

Subsequent bounce stalled at $51.80, signaling limited upside ahead of final attempt through $50.70 (10/11 Jan higher lows).

Near-term technicals are in full bearish setup, while daily studies are weakening after yesterday’s fresh weakness, triggered on loss of former strong support and base at $52.14.

The price may extend towards $50.24 (Fibo 38.2% of $42.19/$55.22 upleg) and psychological $50 support (reinforced by rising daily 55SMA) in extension, on sustained break below $50.70 pivot.

Extended upticks should be capped under former base at $52.14, reinforced by falling daily Tenkan-sen.

Res: 51.80; 52.14; 52.50; 52.77
Sup: 51.23; 50.70; 50.24; 50.00

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