US CRUDE OIL

Oil price regained traction and extended strong recovery from Thursday’s low at $50.90. Fresh upside action above daily Tenkan-sen/Kijun-sen barriers (52.10 / 52.58 respectively), sidelined immediate downside risk and shifted near-term focus higher. Recent price action has formed the triangle on daily chart and fresh bullish acceleration is looking for test of triangle’s upper boundary (currently at $53.17) to generate further bullish signals. Extension above $53.52 (former congestion tops/Fibo 61.8% of $55.22/$50.70 pullback) is needed to confirm reversal and open targets at $54.15 and key $55.22 barrier. Daily Tenkan-sen (currently at $52.10) should contain extended dips, to keep fresh bulls in play.

Res: 53.17; 53.52; 54.15; 54.49

Sup: 52.58; 52.10; 51.65; 50.90

GOLD

Spot gold is directionless for the second day, trading in a narrowing range between falling daily cloud base and rising daily Tenkan-sen. Quick reversal after upside rejection at $1219 Fibo resistance was contained by Tenkan-se line at $1196.
Thickening daily cloud is continuing to pressure, following false penetration into cloud earlier this week.
Daily RSI and Slow Stochastic turned lower from overbought territory and generated bearish signal.
However, the price action is resisting downside pressure that was so far offset by thrust provided by ascending Tenkan-sen.
Markets are awaiting stronger signals from comments of new US president.
Upper triggers lay at $1206/10 (daily/weekly cloud base), to signal fresh upside and retest of upper pivot at $1219.
Conversely, sustained break below daily Tenkan-sen ($1198) and Thursday’s low ($1196) would signal fresh weakness that could extend towards $1182 (Fibo 38.2% of $1122/$1219 upleg).

Res: 1206; 1210; 1219; 1230
Sup: 1198; 1196; 1187; 1182

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