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Commodities report: gold and crude

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

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.

Gold chart

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.

WTI chart

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.

Brent chart

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