Technical analysis: key levels for gold and crude

Could the sell-off be over for both crude and gold? Both have seen some form of recovery, yet another leg higher is needed for confirmation.

Gold bar
Source: Bloomberg

Gold attempting to recover further

Gold has managed to find support on yesterday’s low of $1335 today following on from the rejection of trendline resistance. We are thus waiting for either a move back below trendline support around $1334 or above trendline resistance and yesterday’s high of $1345.

Brent pulls back from sharp rally

Brent saw a sharp rally yesterday, following on from a sharp move lower over the previous days. The sell-off overnight has to break below $8.82 to keep this downtrend intact, where yesterday’s break above the swing high of $50.09 signals a potential recovery in the making.

Is the crude sell-off over?

WTI has also seen a rally through the first swing high and as such, we could be seeing a recovery in the making should price not manage to break back below $46.65. With that in mind, a more neutral view is held, with a clear possibility for this sell-off to be over. Watch out for $47.26 and $47.04 as potential support levels. 

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