Technical analysis: key levels for gold and crude

Indecision reigns in commodities space, with crude continuing to exhibit major choppiness.

Gold bars
Source: Bloomberg

Gold at key resistance

Gold is currently selling off from $1075 resistance, which was yesterday's peak. The selloff seen on Friday and Monday has not broken below $1064, which is crucial.

Despite this, we have not seen enough to point towards a more bullish sentiment and thus broken levels can provide direction.

A close above $1075 would point towards further upside, with resistance levels of $1077, $1079 and $1088 worth watching.

Given the downtrend and current respect of $1075, a move lower seems likeliest for now, with $1070, $1066 and $1064 the next key support levels.


US Crude sees choppy consolidation

US Crude has been a difficult one to trade of late, given the clear lack of trend and choppiness. Yesterday's break lower, clearly failed and we are back into the consolidation zone.

In general, we have seen it turn lower between $42.82-$43.03 and given that we are approaching that zone, there is a possibility of another move lower. Thus a bearish view holds unless price closes above $43.03.

Support levels to watch are at $42.03, $41.22 and $40.58, while a close above $43.03 would look towards $43.25 and $43.58 as the next resistance levels.

US Crude

Brent attempts to break $46

While yesterday saw US Crude breaking lower and Brent consolidating, we are seeing the opposite today, with Brent attempting to break higher from this period of consolidation.

Price is currently turning lower below $46, showing that we haven’t quite begun trending higher. However, the potential is there and thus a close above $46 would put a more bullish view on things, with resistance levels of $46.39, $47.00 and $47.62 in view.

Alternately, a failure to break $46 and a close below $45.18 would point towards a deeper move lower, with support levels at $44.45 and $43.85. 


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