Commodities report: gold and crude

After yesterday’s massive bounce in oil prices, we are seeing the sell-off resume, leading to a continuation of the bullish gold theme.

Oil
Source: Bloomberg

Gold recovering from late sell-off
Gold is on the surge following on from the big move lower yesterday afternoon. Gradually we are seeing gains over the past week and this theme seems likely to come back into play today, with a move back towards $1254 and $1263 resistance levels over the medium term. Our short-term bullish holds unless we see an hourly close back below $1232.

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WITI breaking lower once more
Yesterday’s late rally in WITI has given way to a small double top pattern. The neckline has now been broken, which is giving way to significant downside. Given the break through $31.22 yesterday, the subsequent rally seemed likely to run out of steam below $33.97.

There is no way to know yesterday’s high represents the end of this rally, yet unless we see a move back above $32.50 it seems worthwhile to expect further selling. Support levels of note are $31.22, $30.73 and $30.36. Resistance levels to watch are $32.25, $32.60 and $32.86.

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Brent finds Simple Moving Average (SMA) support
Brent has also been pulling back this morning, following on from yesterday’s late rally. We are currently seeing a bounce from the 200-hour SMA, yet this is not expected to last. Thus a bearish view remains in play unless we see an hourly close back above $35.21. Support levels of $33.14, $32.23 and $31.20 are worth watching should the sell-off resume. Meanwhile to the upside $34.84, $35.21 and $35.44 are near term resistance level.

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