While strong risk appetite is seen in stock markets, oil and gold are stuck in range. WTI crude oil’s rally attempt is limited below 49.25 resistance and 50 psychological level is too much to overcome for now. Consolidation from there could extend further. But even in case of deeper pull back, downside should be contained by 43.50 cluster support (38.2% retracement of 33.50 to 49.25 at 43.23) to contain downside to bring rebound.
Gold’s attempt on 1900 handle and 1906.74 resistance failed yesterday. As long as 1856.98 support holds, we should see rebound from 1764.31 resumes sooner rather than later. Sustained break of the medium term channel resistance will affirm the view that corrective fall from 2075.18 has completed with three waves down to 1764.31. Further rally should be seen then to 1965.50 resistance to confirm. Though, break of 1856.98 will risk more downside first and turn focus to 1819.05 support.
