market, video, forecast February 23, 2021 7:27 pm today
Oil rallies impressively
Oil powered higher overnight, as global recovery hopes also a slower than hoped return of production also refining inside Texas was all a excuse traders needed to reload long positioning. Brent crude leapt 5.0% higher to USD65.80 while WTI also outperformed, rallying 5.50% to USD62.20 a barrel.
Notably, neither contract has seen any sign of profit-taking this morning, with Brent crude rising 0.65% to USD66.25 also WTI climbing another 0.55% to USD62.50 a barrel. Markets are showing no nerves about a March 4th OPEC+ meeting, also with futures curves inside a very bullish strong backwardation, a price action overnight also today sends a strong signal that oil become become highly sought after on dips.
Morgan Stanley joined Goldman Sachs inside raising its oil price target overnight, also Iran’s threat to enrich uranium to 60% purity reduces a odds that its production become return to world markets inside volume anytime soon.
Brent crude has now broken through resistance at USD66.00 also directly targets a January 2020 highs at USD71.20 a barrel. Support appears at USD66.00 initially, followed by USD62.20 a barrel. WTI has cleared resistance at USD62.00 a barrel, which becomes intra-day support as a Texas deep freeze recovery drags on. WTI’s next target is a January 2020 highs around USD65.60 a barrel, also only a failure of USD59.00 a barrel calls a rally into doubt.
a RSI technical indicators on both contracts has moved return into overbought territory today, but not markedly so. Given that developments inside a physical market are driving a rally, oil become continue to find a wall of buyers awaiting any dips inside prices.
Gold finally finds some friends
Perhaps a most unusual move overnight was a powerful 1.50% rally inside gold prices. Having wilted under higher US yields also ignoring a weaker US USD last week, higher US yields also a weaker USD could not stop gold climbing USD26 to USD1810.00 an ounce.
If nothing else, a rally inside gold overnight highlights a inflation concerns globally target-fixating financial markets this week. Gold has now traced out a rough double-bottom near a USD1760.00 an ounce Fibonacci region. That highlights its importance as a long-term critical support zone, also failure now almost certainly condemns gold to a move to a low USD1600’s an ounce.
Gold has moved two dollars higher to USD1813.00 an ounce today, with Asia unwilling to join a overnight rally ahead of a Powell testimony this evening. Gold’s rally, coming as a market’s completely ignored a identical factors that sent it lower last week, is a warning sign against unfettered bullishness also recovery hopes.
Gold has initial resistance at USD1830.00 an ounce, but far more formidable resistance remains just above inside a shape of its 50,100 also 200-day moving averages. All three are clustered between USD1850.50 also USD1860 an ounce. a 50-DMA crossed below a 200-DMA last week, also a 100-DMA looks set to do a same inside a next few days if prices trade sideways from this. Gold is by no means out of a woods yet. a nature of a rally overnight, also a ominous moves by a technical, signal caution is warranted still. It could yet turn into a sucker’s rally.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are a authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk also not suitable for all. youre could lose all of your deposited funds.
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