Let’s update our charts and highlight the recent sell-swing phases in these commodities:
Yesterday we highlighted the “Rounded Arc Reversal Pattern in Gold” for an educational resource.
Today we see stronger selling as the reversal (sell-swing) continued, breaking the support of the prior low.
Oil similarly gapped strongly through support today, sending both commodities to new swing lows.
While Gold is “only” down 5% in the hourly chart above, Oil collapsed 15% in the same period.
Oil fell roughly $10.00 per barrel which is a huge move in about two weeks.
There are risks and rewards to trading commodities which tend to show persistent price action when a swing gets in motion.
Nevertheless, here we are into the $45.00 level much faster than many traders assumed possible.
Gold also tests the $1,225 target level which is just above the $1,200 “Round Number” support pivot.
Continue watching and trading these markets that are caught up in strong positive feedback loops at the moment.
The United States Oil Fund LP ETF (NYSE:USO) rose $0.02 (+0.21%) in premarket trading Friday. Year-to-date, USO has declined -19.28%, versus a 6.81% rise in the benchmark S&P 500 index during the same period.
This article is brought to you courtesy of AfraidToTrade.com.