GOLD
Spot Gold extends recovery from fresh low at $1202 for the second day, with upside attempts being so far capped at $1221 (broken neckline of weekly H&S pattern / Fibo 61.8% of $1232/$1202 downleg). Bounce from low which lies just ahead of strong support at $1200 was triggered by oversold daily studies and should be ideally capped at $1221 zone, as completion of weekly H&S pattern signaled significant downside.
However, the price signaled strong hesitation on approach to $1200 pivot and extension above $1221 barrier cannot be ruled out. Extended upticks will be seen as selling opportunities for attack at $1200 and further bearish acceleration on break lower, which may extend to $1171 (Fibo 61.8% of $1046/$1375 ascend).
Extended correction is expected to stay capped under lower top of 16 Nov at $1232, to keep bears intact. Only sustained break here would sideline bears for extended correction.
Res: 1221; 1232; 1235; 1240
Sup: 1213; 1209; 1202; 1200

US CRUDE OIL
Oil price peaked at $49.18 today, the highest levels since end of October, on extension of strong two-day rally on Fri/Mon. Fresh bulls probed above important barriers at $48.67 (Fibo 61.8% of $52.21/$42.94 descend) and daily Ichimoku cloud top at $48.83. Subsequent pullback dragged the price down over $1, to find footstep at $47.79.
Bullish setup of daily MA’s and strong bullish momentum, keep the oil price supported for renewed attempts through strong $48.67/83 barriers, close above which will generate fresh bullish signal for further advance, which could extend to psychological $50.00 barrier.
In addition, rising hopes on final agreement of oil production cut on OPEC meeting in December, further support oil price.
Strong supports at $47.63/58 (broken 30SMA / daily Kijun-sen line) are expected to ideally contain dips before bulls resume.
Conversely, daily close below Kijun-sen line would generate negative signal and risk further easing.
Res: 48.67; 48.83; 49.18; 50.00
Sup: 47.58; 46.80; 46.06; 45.17

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