Technical analysis: key levels for gold and crude

Despite early losses for both gold and crude, it seems likely that the bulls will come in once more in the commodity market today.

Oil barrels
Source: Bloomberg

Gold back at crucial trendline support
Yesterday brought about a nice bounce in gold, as the ascending trendline held once more. We have seen yet another move down to the $1271, ascending trendline and 100-SMA support today. This provides a good bullish indicator for yet another rally in this market.

Of course, there is a chance we could see a break lower and thus an hourly close below $1268 would negate this bullish view. However, there seems a good chance we will rally from here and thus a bullish view is in play, with $1280, $1282 and $1289 the next key resistance levels.

WTI turns lower after late gains
Despite a sharp move lower in the morning, WTI managed to regain significant ground yesterday. We are seeing a similar move today, with a break below $48.88 leading to significant losses. However, while we could see short-term losses, a closed hourly candle below $48.13 would be needed to provide a bearish outlook given the strong uptrend.

As such, it seems sensible to buy into pullbacks, with the $48.42 - 48.48 zone an interesting area of support should it be reached.

Brent retraces after hitting $50
Despite the fall below $49.00 in the morning, Brent also managed to rally yesterday. The continued creation of higher highs persists and thus it is likely that retracements will be bought into.

Therefore a bullish short term view holds unless we see we see an hourly close below $48.83. The $50.00 mark remains the crucial resistance level of note.

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