Stay informed with "Analytics for profits"

Gerard Moore 08 / June / 21

Gold and oil seem to have completed their correction - they are on the home stretch.


Gold and oil seem to have completed their correction
Visitors: 49 Rating: ★★★★★

Today is a day off on most trading floors in Europe and America with limited dynamics of commodity markets. However, this is a good reason to take a closer look at the events of recent days in oil and gold.

During the next OPEC + meeting, production quotas in April remained practically unchanged, suggesting production by 7 million barrels per day below the levels of March last year.

During the next OPEC meeting + production quotas in April remained practically unchanged During the next OPEC meeting + production quotas in April remained practically unchanged

Separately, Saudi Arabia will voluntarily remove another 1 million barrels per day from the market.

In May-June, it is planned to increase quotas by 350 thousand, and in July - 450 thousand. These are less sharp increases than the agreed-upon 500 thousand per month since February.

Saudi Arabia will further ramp up production, breaking the return of a voluntarily cut 1 million bpd over the next three months.

Apparently, oil volatility at the end of March forced the cartel to increase production more cautiously, despite noticeable improvements in macroeconomic indicators in the United States and China.

Strong production data from major oil consumers - two of the world's leading economies - has kept oil in line with the upward trend.

Brent once again found support on its 50-day moving average downturn and added more than 3% to Thursday's close. Further improvement in macroeconomic outlook may further push the price upward and has the potential to bring Brent back above $ 70 in April. However, further traders will need to pay more attention to the dynamics of production in the United States, which could rise sharply due to the rapid rise in prices.

Brent found support once again on the 50-day moving average downturn and added more than 3% to Thursday's close Brent found support once again on the 50-day moving average decline and added more than 3% to Thursday's close

Gold received support earlier in the week on a downturn to the March lows of $ 1,680 and towards the long-term support line for the uptrend since mid-2019. Interestingly, this week the rate was moving at the very edge of the bull market. A decline below $ 1,660 would have been a 20% dip from the August 2020 peaks, but buyers have managed to pull gold out of the bear market.

Gold received support earlier in the week on a downturn to March lows at $ 1,680 Gold earlier in the week received support on a downturn to March lows at $ 1,680

In the event of a further sharp change in the value of gold, traders should pay attention to the dynamics near $ 1750. Earlier in March, the rebound lost strength just around these levels. A decisive break above will indicate serious bullish intentions.

Additionally, it will cement the correction of gold and the jump above the $ 1,770 level, through which the 50-day moving average passes and the area of the lows of the December dip is located.

Tags:

Comments 0