Top three charts of the week: GOLD, DE30, OIL.WTI

12:25 PM August 5, 2020

GOLD

Precious metals continue to rally. Gold price surged above $2,000 yesterday, and the upward move is being continued today. Looking at the chart from a technical point of view, we can see that recent upward move was very strong and as long as the price sits above the $2,000 handle, more gains look to be the base case scenario. The market has never been higher so we can look at exterior retracement for a hint on the next resistance. The nearest resistance to watch lies at $2,155 where the 127.2% exterior retracement of downward move started in 2011 can be found. So far there are no signals indicating an incoming correction but should such a correction start, trades should look towards the $1,900 zone as a potential support.

GOLD MN interval. Source: xSation5

DE30

Looking at the daily time frame, we can see that the German index broke below the upward channel, signalling that the bigger downward correction may start. However, the decline stopped at the support marked with the previous price reactions at 12,290 pts. DE30 is trading slightly higher today, and if the current sentiment prevails, the attack on the resistance at 12,930 pts looks to be a possible near-term scenario. Should buyers manage to break above it, a new upward impulse could be launched and it may lead the index towards all time highs (13,800 pts). On the other hand, breaking below the 12,290 pts may pave the way for a bigger downward move. 

DE30 D1 interval. Source: xSation5

OIL.WTI

A fresh post-pandemic highs have been reached on the oil market today. In spite of the fact that the upward momentum has weakened, main trend remains bullish. However, WTI price broke below the 120-period moving average, threatening to make a bigger correction move. Nevertheless buyers managed to halt declines at the $38.6 support and new upward impulse was launched. The next resistance levels to watch can be found at 127.2 and 161.8% Fibonacci retracements of recent downward correction. 

OIL.WTI H4 interval. Source: xSation5

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