Market Analysis of Gold on Wednesday 8 December 2021
On Tuesday, Gold prices rose slightly due to easing concerns about Omicron's new variant coronavirus and China's RRR cuts to stimulate the economy. The market's focus is on US inflation data, which could affect the pace of rate hikes by the Federal Reserve. Concerns over inflation continued to loom over the market, which provided support for the value of the dollar and gold.
From a technical perspective, gold’s daily graph closed with a small bullish candle. MA5 and MA10 are crossing at the bottom. On the 4-hour chart, gold candle broke through the previous downwards channel and continued the formation of the head and shoulder pattern. MA found support and other indicators also experienced a slight rebound. Overall prioritize buying at low prices in the fluctuation zone. Consider the support and resistance zones, short term intraday trading split the bull bear point around 1785.
Resistance：1795-1802-1815
Support：1785-1778-1770
Market Analysis of Crude Oil on Wednesday 8 December 2021
Crude oil rose by more than 3% on Tuesday and the current price is at $71.67 per barrel. US API crude oil inventories fell by 3.1 million barrels in the morning, market’s concerns about the impact of Omicron mutant strains on global fuel demand were eased. The nuclear negotiation with Iran was not optimistic which provides momentum for rising oil prices.
From a technical perspective, the daily graph continued to close bullish. MA converged at the low position; and the signal of stabilization was strong. On H4 graph, there was an upward channel. BOLL widened then went up. RSI entered the strong zone. Overall, prioritise Buy at the low position. The chart below is showing the key point and the estimated trend, the deciding point whether to buy or sell is near 72.80.
Resistance：72.20-72.80-74.00
Support：70.70-69.80-69.00
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