Gold and Oil Strategy: Gold Stages Inverted V Reversal, Oil Returns to Pressure Zone

Deep News18:00

**Spot Gold:** On December 19, spot gold experienced a short-term decline during the late Asian session, trading near $4,318 per ounce, down nearly $15 intraday. Multiple factors contributed to the drop, including weak U.S. CPI data, which diminished gold's appeal as an inflation hedge. Additionally, a rebound in dollar demand and improved market risk sentiment added downward pressure.

**Technical Analysis:** On the 1-hour chart, gold remains in a weak corrective phase after recent highs, with no clear trend reversal yet. The price has retreated to the mid-lower range of its consolidation zone, reflecting a normal pullback after gains. Key resistance lies at the upper Bollinger Band ($4,352). A breakout above this level could signal a retest of the all-time high ($4,381) and the psychological $4,400 mark. Conversely, if bearish momentum persists below the December 17 low ($4,300), further downside toward $4,271 (December 16 low) and the 100-day EMA ($4,257) is possible.

**Trading Strategy:** - *Short Positions:* Aggressive entry at $4,345–4,353; conservative entry at $4,368–4,376. Stop-loss: $12; target: $20–40 profit. - *Long Positions:* Aggressive entry at $4,299–4,292; conservative entry at $4,272–4,265. Stop-loss: $12; target: $20–40 profit. **Pivot Level:** $4,302/oz.

**WTI Crude Oil:** **Fundamentals:** Oil prices weakened as geopolitical tensions eased, with no immediate escalation in Venezuela-related supply risks. Market focus remains on potential U.S. intervention and Russia-Ukraine ceasefire talks, limiting upside momentum.

**Technical Analysis:** The bearish structure persists, with medium-to-long-term moving averages pointing downward. RSI remains neutral-to-weak, suggesting subdued buying interest. Immediate support at $55 is critical; a breach may trigger further declines. Resistance is seen at $56.8–57.8.

**Trading Strategy:** - *Short Positions:* Aggressive entry at $56.4–56.8; conservative entry at $57.6–58.0. Stop-loss: $0.60; target: $54.8. - *Long Positions:* Aggressive entry at $54.8–55.2; conservative entry at $53.8–54.2. Stop-loss: $0.60; target: $57.0. **Pivot Level:** $57.0/barrel.

*Disclaimer: This analysis is for reference only and does not constitute investment advice.*

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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