of clients are net short. Change in | Longs | Shorts | OI |
Daily | 0% | 6% | 2% |
Weekly | -4% | 15% | 2% |
What does it mean for price action? Get My Guide Crude Oil Technical AnalysisUS crude oil's weekly chart shows that the falls seen at the start of this year have been arrested for now, with the market confined to a much narrower range for the last two weeks.
This scenario has a clear fundamental basis in the virus-linked worries about demand which characterized the start of the year, calmed since by hopes that producers will respond by limiting supply. Whether the current range proves to be any sort of durable base will depend on how these stories play out, but the market remains around its 2019 lows (made in January of that year), with late 2018's foray down to the $45 handle lurking should more weakness come.
It seems highly unlikely that traditional producers would accept such a fall for long, however, and the bulls may now have a little upside in their sighs, possibly staring with the recapture of psychological resistance at $54.
Gold Technical AnalysisGold prices continue to lengthen the modest daily chart uptrend channel which began to build last week.
The move seems to lack a little conviction though and, although the channel is probably worth respecting, it seems to be fizzling out before the previous significant high has been taken out. That was February 2's $1592.
The broader underlying support range looks solid enough though, even if that channel does give way, with a return to it perhaps the most likely prospect now.
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--- Written by David Cottle, DailyFX Research
Follow David on Twitter @DavidCottleFX or use the Comments section below to get in touch!
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