Gold Overbought But No Sell Signal Yet; WTI Crude Trade Sideways
Jason Sen | Mar 07, 2024 04:35AM ET
(XAU/USD) hit the next target of 2146/49 with a high for the day just above 2152. Further gains are expected towards 2160/62h2 Gold:/h2
- The break above 2120 was our latest buy signal and we hit the next target of 2146/49 with a high for the day just above 2152. Further gains are expected towards 2160/62, perhaps as far as 2169/71.
- Be aware that Gold is obviously severely overbought after the $125 rally, but with no sell signal, do not even think about trying a short position yet!!
- I remain a buyer on any weakness (profit taking) although it is difficult to identify short-term support levels because the move higher has been so fast over the last 4 days.
- We should have some support at 2123/19 and longs need stops below 2110.
- A break below here however risks a slide to 2092/88.
- It's 2 steps forward and 1 step backward for this market. WTI Crude remains mostly in a sideways consolidation and keeps just finding new ranges.
- An excellent recovery from strong support at 7790/60 made it as far as the upper end of the recent range at 8040/8085.
- I expect strong support at 7790/60 and longs again have targets of 7860, 7930, 7970, perhaps as far as 8040.
- A break below 7720 today however risks a slide to to 7690 and 7600/7580.
A break above 8100 should be a buy signal targeting 8130/50 then 8200/8230.
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