The price of Oil had fallen since creating a high in early July at $74.00 and in the space of six weeks it fell to support at $64.00. US Crude Oil Inventories are due this afternoon with an expectation for a draw of -1.6 million barrels from the previous build of 6.8 million. This in theory should created upward pressure on price but the data has been predicted to show a draw of approximately 2.6 million barrels for each of the last three reading and this drawdown has failed to materialise on each occasion. Only time will tell if today is any different. A loss of 6400.00 can see oil bears regain control and drive price to the next support at 6186.30. The recent rally over the last week is healthy for shorts as it reenergises the market. A continued selloff would ultimately look for 6000.00 with 5793.15 support in extension.
Resistance can be seen at 6650.50 with a break above this area looking to engage with the key 6758.70 level. A breakout from here can squeeze short sellers and push price to 6918.56 followed by 7080.56. This is where sellers may take a stand and a failure to break higher above 7200.00 may have bearish consequences for the months ahead. Resistance above can be found at 7300.30 and 7400.00.
Gold is also finding strength this week after bouncing from support at 1158.40 last week. Resistance is in place around 1200.00 with the 1180.00 level softening. Should 1200.00 be unbreakable a drop under the low for 2018 would see price look to the 1122.75 area as a target to reach for, being a major higher swing low. The proximity of 1100.00 to that support means that any push can see the level tested with a break down in support resulting in a move into the consolidation area between 1046.00 and 1100.00.
Resistance on the chart can be found at 1236.50 with a break above this area targeting 1270.00 and ultimately 1300.00. The double top for the market stands at 1365.30 and a revisit to this area would be impressive as we head into what has traditionally been a seasonally strong time for the precious metal into year end.