Technical analysis: key levels for gold and crude

Gold back in favour as it continues to push higher. However, with the dollar coming back to strength, we are seeing crude continue to tumble.

Gold bullion
Source: Bloomberg

Gold seeks to break higher once more
Gold saw yet another push higher yesterday, with the price reaching both trendline resistance and the notable $1271 resistance level. However, despite the subsequent retracement, it looks like we are set to see another move higher to challenge that level once more.

An hourly close above $1271 should see another leg higher for gold, with the bullish view only negated with a closed hourly candle below $1256.

Brent failure swing points to further losses
Brent has seen a failed attempt to break higher followed by a move through key support, thus forming lower highs and lower lows. We have seen such a strong rally of late that this could just be a retracement of the June rally.

Nevertheless, the hourly close below $51.68 points towards a short-term bearish outlook, with $50.89 the next support level of note. We would need to see an hourly close above $52.30 to negate this view.

US crude breaks key support level
WTI has similarly broken through a crucial support level, at $50.62, to complete a lower high and lower low pattern. This points towards a situation where people will likely look to sell into rallies.

With that in mind, the short-term view is bearish until we negate this trend. As such a bearish view is held unless we see an hourly close above $51.14.

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