Going further into the week ahead, gas futures could approach the major support zone of $2.01 per mmBtu, said Dixit of SKCharting.
“But consolidation against the current decline and momentum accumulation from support areas can resume the advance towards the recent high of $2.68, and extend the upward move towards $2.98 and $3.25,” added Dixit.
While the provisional debt ceiling agreement announced by Biden could weigh on gold, the yellow metal might survive a larger selloff if the spot price sustains above the 50% Fibonacci level of $1,942 an ounce,
“We expect a rebound towards the horizontal resistance zone of $1,975, which if cleared, can extend the recovery towards $2,015.”
On the flip side, a sustained break below $1,942 followed by weakness beneath $1,936 will attract sellers, pushing the spot price down towards the 61.8% Fibonacci level of $1,910,
Notwithstanding the outcome of the debt ceiling agreement deal between the White House and congressional Republicans, last week’s action in WTI indicates a pause in bullish momentum before the U.S. crude benchmark can charge higher, said Sunil Kumar Dixit, chief technical strategist at SKCharting.com.
“WTI should reach the weekly Middle Bollinger Band of $75.90 if it recaptures the momentum it left off earlier this week,” Dixit said. “Momentum accumulation from support areas is very likely to resume the uptrend, targeting a retest of $73.80 and a swing higher to $74.70, followed by $75.90.”
For any reason, if oil turns lower, expect a move back towards $70 support, with a view of testing $68, Dixit added.
HOLDING CALL BUY GOLD 61280 HIGH 66943 PROFIT 5663 POINT ALL TARGET HIT
