Oil is at an interesting level at the charts indicating, perhaps, some demand starting to come in.
The 1180 to 1185 level may look interesting to buyers:
- There is previous demand at around this level – buyers have come in at this level in the recent past and bought the market strongly
- Gold broke the highs from October 2014 (although we are trading under this level presently)
- Sellers broke the lows and made new lows at the end of October but buyers bought the market at that point.
- We are making a series of higher lows on the daily chart
- There is the potential for some trend line retests at the 1180 area
Its a mixed fundamental bag for the shiny metal at the moment:
- Gold demand has dropped to its lowest level in four years – an falling demand from China
- Russia is buying gold in large quantities
- India could announce a reduction in the import tax on gold this month – this may boost the demand for the metal.
Remember, the markets can go either way! Successful investing is anticipating the anticipation of others.
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