Technical analysis: key levels for gold and crude

Gold attempts to break higher to confirm the bullish sentiment driven by last week’s channel breakout. Meanwhile, crude oil bounces into key resistance which will dictate play for the day.

Silver bars
Source: Bloomberg

Gold rallying once more

Gold is rallying heavily this morning, following on from a pullback to the $1085 support level. The breakout from a descending channel last week provided a bullish outlook which has yet to really materialise.

However, price is clearly beginning to show signs of resurgence, with the move back above $1093 crucial. As such, a bullish view is favoured, with resistance levels of $1095, $1097, $1099 and $1108 in view.

To the downside, the $1089 level is expected to hold should we see a retracement.

However, should price close back below $1085, this would negate the bullish view. 

US crude rallying into resistance

US crude is rallying this morning, despite the release of a disappointing Chinese data overnight.

Price is currently challenging the $30.84 resistance level which is key to the day’s trade. An inability to close above this level would likely drive a move back down to $30 in the coming hours.

However, a closed hourly candle above $30.84 would bring about a good chance for further gains, with $31.24 the next key resistance level.

Ultimately, we would need to see a close back above $32.46 to be anything other than bearish for the medium term.

However, with a double-bottom created should price close back above $30.84, this $30.84 level will be key to the day’s trade. 

Brent also at H&S neckline

Brent has also rallied heavily overnight, bringing price up to the $29.79 double-bottom neckline.

Similarly, a closed hourly candle above this level should shape a more bullish day for Brent, where an inability to do so could provide another move lower.

As such, this level will be pivotal for the price action throughout the day. Resistance levels of note are $29.79, $30.50, $30.74 and $31.23.

To the downside, support levels of $28.66 and $28.20 are key for the short-term.

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