Technical analysis: key levels for gold and crude

Gold takes a breather within a strong rally which has been taking place throughout 2016. Conversely, crude price continue to tumble, with the rally seen this morning expected to be sold into.

Source: Bloomberg

Will gold's rally continue?

Gold bulls have been having a better time of it lately, with a clear uptrend coming into play throughout January so far.

We are seeing a moderate pullback this week, yet further upside seems likely. The $1098 levels seems key this morning, with an intraday double-bottom being created should we see a close above that level.

As such, a closed hourly candle above $1098 would provide a bullish picture for the day, with trendline resistance (currently $1103), $1108 and $1111 in view.

However, a close below $1092 would provide a more bearish picture with $1089, $1085 and $1081 the next in view.

US crude selloff continues to roll on

US crude has seen substantial devaluation so for this year, with price losing almost $7 since the first trading day of the year.

We have seen no signs of this trend slowing down and thus unless price closes above $32.21, the bearish view remains, with $31.72 an interesting resistance level before that.

Below $31.24, support levels are hard to come by, yet watch out for whole numbers.

Brent downside expected

Brent is also well into a downtrend, with the current intraday rally likely to be sold into once more.

Key levels of resistance to note here are $31.51 and $31.84, where an hourly close above $31.84 would bring likeliness of a stronger retracement higher.

However, unless that happens, another turn lower seems to be on the cards, with $30.74 the first notable support level.

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