Commodities report: gold and crude

Gold is attempting to break free from yet another symmetrical triangle, while crude finds Fibonacci support for a likely continuation of the bullish trend.

Gold bars
Source: Bloomberg

Gold breaking higher once more
Yet another symmetrical triangle is being broken for gold, with price currently pushing through the crucial $1273 resistance level. This means we have now created a new higher high to match the continued higher lows seen over recent days.

As such, a bullish view is held unless we saw a move back below $1263. Near-term resistance is Friday’s high of $1280, with the next major level beyond that is found at $1307 (January 2015 peak).

US crude to rally once more?
US crude has been a very consistent performer of late, with yet another major leg higher occurring in the US session. We have seen yet another gradual retracement overnight, with a move back to the 38.2% Fibonacci level. Given yesterday’s clear respect of the 23.6% retracement, it is clear Fibonacci levels are worth watching for the next leg higher.

Ultimately, a close above $39.09 would be a strong indicator that another move higher is occurring. With recent big moves coming within the afternoon, volatility could only pick up later in the day.

Support levels of note are $38.32, $38.08, $37.84 and $37.08. Resistance levels to watch are $38.94, $39.09 and $39.84.

Brent also respecting Fibonacci levels
Brent crude is almost a carbon copy of US crude, with a pullback to the 23.6% retracement yesterday, being following by a 38.2% correction this morning.

We are seeing another rally seemingly coming to the fore, which continues to play into the uptrend of recent weeks. Again, confirmation would come with a closed hourly candle above yesterday’s high of $41.20. The bullish outlook remains unless we see a break back below yesterday’s low of $39.04.

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