Technical analysis: key levels for gold and crude

Commodities break higher following FOMC boost, providing a renewed bullish view for crude and gold.

Oil processing plant
Source: Bloomberg

Gold breaks through trendline resistance
Gold has broken through trendline resistance, following yesterday’s FOMC meeting. After a brief overnight pullback from $1263 resistance, we are seeing another sharp rally this morning.

As such, the bullish view is back in play, with $1280 and $1284 the next major resistance levels of note. Essentially we will be watching for continued higher highs and higher lows on an intraday basis to continue the bullish outlook.

US crude back on trend
US crude is breaking higher today, with the weakness in the dollar proving a boon for crude prices. A brief pullback overnight has given way to new highs and the brevity, coupled with the fact it could not even touch the $40.00 support level, highlights the strength of the current bullish sentiment. As such, watch out for continued highs and higher lows for this trend to remain in play.

It seems we have broken out of a period of consolidation and thus we could see this market trend in a more convincing manner once more. The next resistance levels of note are $42.00 and $43.58, with support at $40.57, $40.00 and $39.11.

Brent breaking out of consolidation phase
Brent is attempting to break through the crucial $41.65 resistance level, following a largely choppy and indecisive March so far. The ability to move out of this period of consolidation will be crucial to seeing the bullish trend that has dominated the past two months come back into play.

As such, an hourly close above $41.65 will provide a strong bullish outlook, with $42.50 the next major resistance level. To the downside, support levels of note are found at $41.35, $40.69 and $40.00.

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