Longer term investors in both gold and silver have no doubt become increasingly frustrated over the last few months, as first the metals gain some bullish momentum, only to see this promptly reversed with a return of bearish sentiment.
The last few days have once again seen Cable test the 1.6800 region, only to fail and reverse once more, with the June futures contract currently trading at 1.6710 on the daily chart. Following the strong gains of last week, which saw the pair surge higher with three wide spread up candles, the first sign of possible short term weakness appeared on Thursday with the doji candle.
The recent bullish trend for crude oil, appears to be running into a stubborn area of price resistance on the daily chart in the $104.50 per barrel area, the same level which saw the commodity sell of sharply back in early March.
The Aussie dollar (AUSUSD) continued to build on the bullish momentum of the last few weeks, with the June futures contract closing the session with a wide spread up candle on the daily chart, surging through the 0.9300 region on good volumes.
Let me start with a quote from my last post on copper where I wrote the following: “……and for any recovery longer term, we will need to see a dramatic buying climax, and given the extent of the current selling, an extended phase of congestion prior to any bullish momentum returning for copper.“
It’s been a roller coaster ride for gold over the last couple of months with the precious metal first rallying almost $200 per ounce, and then promptly reversing from the $1390 per ounce level, and giving back just over half the gain, to trade at the time of writing at $1293.20 per ounce.
Of all the markets and instruments that I comment on and write about, none attracts more strongly differing opinions than gold.
Whilst daily charts give us a framework for intraday trading, it is often the weekly chart which gives us a broader perspective, the zoomed out view, and this was certainly the case with oil which I looked at recently.
Last week was a volatile one for crude oil futures, with the April contract closing the week at $102.58 a barrel having touched $105 per barrel at the start of the week.
It’s been an interesting few weeks for equity markets, with the usual crop of doom and gloom ‘experts’ emerging from the undergrowth to call the top of the market, before disappearing equally quickly, realizing that they were wrong
