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Commodities report: gold and crude

With crude crashing through crucial support levels, further gains seem likely for gold.

CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.
Gold
Source: Bloomberg

Gold breaks higher from triangle
Gold has broken out the top of the triangle formation, yet stalled at the $1232 resistance level. Ultimately, we will need a move back through $1240 to point towards a continuation of this wider uptrend, and until then we are confined to shorter term moves. 

With price having returned to trendline support, there is a chance we could see a bounce towards $1232 and $1240. However, we would need to see an hourly close above $1230 to signal the end of the drift lower we have seen over the past 24 hours.

The long term charts signal a bullish bias and thus another move to the upside seems likely soon, yet it is sensible to await a signal of this move first. Resistance levels of note are $1230, $1232 and $1240. Support levels to watch are $1222, $1217 and $1205.

WTI breaking below crucial support level
WTI is breaking through an absolutely crucial support level at $31.22, which is very bearish given the inability to create a new high on Monday. We await a closed hourly candle below this level for confirmation of a double top, which could clearly signal the beginning of another sell-off for oil. Support levels of note are $30.48, $29.70 and $28.95, with resistance at $32.25, $32.86 and $33.38.

Brent tumbles into support
Brent is dropping sharply into the crucial $33.14 support level, which we would need to see broken to confirm the move we are seeing in WTI. A closed candle below $33.14 would provide us with a bearish view, with support levels of $32.23 and $31.20 in view. Resistance levels are at $34.16 and $34.84.

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CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.