As the world nervously watches developments in the Middle East, here is a major update on gold, silver and crude oil.
Oil Back Above $55
November 8 (King World News) – Here is a portion of what Jeff Saut’s partner Andrew Adams wrote from Raymond James: Another key development over the last week has been WTI crude oil getting back above $55 for the first time since the summer of 2015. The breakout above this critical resistance level continues a great run in oil since mid-June and we have written in the past that getting back above $55 may quickly lead to the commodity hitting $60. That still seems doable, though oil may be hitting some resistance from a line drawn from the October 2015 and early 2017 highs. If that line can be bettered, there probably isn’t much standing in oil’s way until the $60-$62.50 zone (see chart below).
Tread Carefully With Energy Stocks, However
The bounce in oil over the last few months has helped many (though not all) Energy stocks, and we called attention to the Energy Select Sector Index’s breakout from its 2017 downtrend back in September. However, the nice run since that breakout is now hitting possible resistance from a longer-term downtrend line connecting the 2014 highs with the late 2016 high, and just above there is a horizontal line around 720 that has proved important in the past…
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This resistance zone in the “price” of the Energy sector (top panel) also coincides with resistance on the relative strength chart versus the S&P 500 (lower panel), possibly increasing the near-term pressure on the group. The overall action in oil looks better than it has in a while, but with the overall Energy sector up about 15% since August, a pause would not be too unexpected (see chart below).
Gold Update
We continue to mention a possibly favorable entry point in Gold, with the price continuing to consolidate just above what looks to be long-term support. It has not bounced the way we have hoped it would yet, but it remains interesting at these levels and could especially be a near-term trading option should the stock market finally pull back (see chart below).
Gold and Silver Index
The “technically interesting” label applies to the Gold and Silver Index, as well. It has pulled back to support from a line connecting the December 2016 and July 2017 lows and this could force the precious metals to bounce. Of course, caution would be heavily-advised if the index breaks below that support line (see chart below).
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***ALSO JUST RELEASED: Celente – This Event Will Trigger Oil To Spike Over $100 A Barrel In A Matter Of Weeks, Igniting Gold & Cryptocurrencies CLICK HERE.
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