Technical Summary: GOLD Shapes Up For Correction.
With an almost a flat trading day seen in today’s trading session, GOLD could be preparing to begin a recovery of its short term declines activated from the 1,226 level. With the presence of rejection candles seen on the daily and 4 hourly charts, the commodity may be struggling to put in a temporary bottom and possibly begin a recovery higher. If this occurs, risk of corrective upside gains could shapeup towards the 1,072.99 and then the 1,073.95 level. We expect that level to reverse roles and provide support. SILVER is also seen hesitating following its last week sharp sell off. It is now trading flat after a run to as high as 15.10 today. Though retaining its broader downside bias, the formation of hammer on Friday could be warning us of an impending corrective recovery in the coming days possibly towards the 15.49 level but if that fails to occur, further downside prices will be targeted. CRUDE OIL is weakening but above its recent low at 69.69. While broader risk remains lower, we think the commodity should correct its declines triggered off the 83.93 level in the days ahead. WHEAT is also on the recovery path as it was seen strengthening in early trading today suggesting it could see further upside after declining for several weeks to touch a low of 482 last week. CORN traded to an intraday high of 362 before backing off today. It is currently trading at the 356 level as at the time of this analysis. Overall, we are seeing consolidation after our model’s recent weakness though still vulnerable. We look for consolidation to corrective upmove in the coming days.
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