Technical analysis: key levels for gold and crude

Yet more downside seems to be ahead for gold and crude, with overnight rallies looking to be sold into.

Gold smelter
Source: Bloomberg

Gold breaks down once more

Gold has seen a move lower from the 61.8% retracement overnight, in a move which follows on from the sell-off on Tuesday. Given that we have seen a break below yesterday’s $1337 swing low and the $1335 support level, there is reason to believe we will see further losses. This is irrespective of whether we see a bounce from here or not.

Ultimately, a bearish short-term view is in play unless we see an hourly candle back above $1347. Clearly, the first hurdle to the downside is the $1327 support level.

Brent to break lower once more

Brent crude saw a nice move lower from trendline, simple moving average (SMA) and Fibonacci resistance this week, with a sharp move towards the bottom of this triangle pattern. An overnight bounce has moved into the 38.2% retracement, which could ultimately prove the backstop to this resurgence.

It makes sense that we will see another move lower, with a break back towards $46.35 and $46.16 support levels. We would need to see an hourly close above $48.43 to negate this bearish view.

US crude moving towards $45 once more

US crude is selling off once more this morning, with trendline and horizontal resistance in play. This comes off the back of the fleeting rally into SMA and trendline resistance earlier in the week.

As such, further downside is expected, with a move into $45.00 seeming likely. An hourly close above $47.26 would be required to negate this bearish view.

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