Precious Metals Start Week on The Front Foot, Oil The Opposite

A new strain of the COVID virus, new lockdowns, and new travel restrictions are heavily influencing financial markets, and commodities in particular. Precious metals are higher due to the fact that theyre considered safe havens and the price of oil is dropping thanks to the new restrictions in travel and movement.

In today‘s trading sniper video we’ll start with Gold, which recently broke and then tested the crucial horizontal level of 1850 USD/oz. The price being above this support level is the first step to a major buy signal. The other and final step would be a breakout of the upper line of the flag formation. The price bounced from it today proving that its a legitimate resistance. If the price closes the day above that line, it would give buyers the green light, and possibly lead the price above the 2000 USD/oz level.

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Next is Silver, which has been moving according to technical analysis expectations over the past few weeks. First of all, the bearish correction bounced from the 38,2% Fibonacci line. Then, the price broke the down trendline, which gave a proper buy signal. Today, the price is testing the 23,6% Fibonacci, which has all the criteria to be considered a crucial resistance. If the price closes the day above it, it will be a proper buy signal.

Lastly lets move to Brent, which started the new week poorly. The price is currently breaking the lower line of the channel up formation. If it closes the day below that line, it will be a legitimate sell signal with the potential target being at the 38,2% Fibonacci line. This Fibo line is additionally strengthened by the highs from August, which make it a very appealing target.

For a look at all of todays economic events, check out our economic calendar.

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