Gold is testing resistance at $1500. There has been much discussion in the media of strong buying of physical gold, but this is not confirmed by the chart. Gold now presents a strong setup for a short trade. After a reasonable bear market rally, price is now consolidating below resistance at $1500. Breakout below $1450 and the rising trendline would signal another primary decline, testing primary support at $1320 but with a target of $1150*.
* Target calculation: 1325 – ( 1500 – 1325 ) = 1150
Nymex WTI rallied sharply on Thursday — ahead of stocks and bond yields — but is likely to encounter resistance at $100/barrel. Respect of resistance would signal a decline to $85. Breakout is less likely, but would suggest an advance to the 2012 high at $110/barrel.
* Target calculation: 99 – ( 106 – 99 ) = 92