Friday, June 9, 2017 4:54 AM EDT
Crude oil prices marked time, digesting losses after suffering the largest daily drop in two weeks in the wake of shockingly disappointing EIA inventory data. Looking ahead, Baker Hughes rig count figures may show US production capacity continued to build, which may stoke supply glut concerns and compound selling pressure. The figures are rarely a big market-mover however and may yield to consolidation or even a corrective recovery into the week-end.
Gold prices fell as James Comey testified in Congress. While certainly critical of President Trump and members of his entourage, the former FBI director did not deliver a bombshell that amounted to a direct and unambiguous existential threat to the administration. This seemed to cool immediate political instability fears and pushed Treasury bond yields higher, undermining the appeal of non-interest-bearing assets. S&P 500 futures are pointing higher ahead of the opening bell on Wall Street, hinting at more of the same ahead.
Gold Technical Analysis – Gold prices are heading lower after putting in a bearish Three Inside Down candlestick pattern, hinting a double top below the $1300/oz figure may be taking shape. A daily close below rising trend line support – now at 1272.62 – exposes a chart inflection point at 1260.85. Alternatively, a push above the April 17 high at 1295.46 targets support-turned-resistance at 1308.00.
Chart created using TradingView
Crude Oil Technical Analysis – Crude oil prices continue to edge lower to support in the 43.79-44.37 area (May 5 low, 76.4% Fibonacci expansion). A break below that on a daily closing basis exposes the 100% level at 42.02. Alternatively, a rebound above the 61.8 % Fib at 45.82 targets the 47.00-12 zone (support-turned-resistance, 50% expansion).
Chart created using TradingView
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