Technical analysis: key levels for gold and crude

Gold regains ground, yet a substantial resistance level restricts the outlook for now. Meanwhile, crude continues to move lower, with further losses likely.

Oil rig
Source: Bloomberg

Gold back to trendline resistance

Gold sold off sharply following the creation of a double top yesterday, yet no sooner had we dropped back into the $1285 region, then we rallied back up to trendline resistance. The $1295 level seems to be regained as a key support level, with price once more rallying into trendline resistance.

Up ahead, the $1300-1307 zone is a crucial region of resistance which if broken could lead to substantial gains. However, for now we are waiting to see if gold can post an hourly close above $1304, which would point towards a likely rally through $1307.

Ultimately, we would need to see a convincing break through $1307 to point towards a continuation of the recent gains. To the downside, watch $1295 as near-term support.

Brent downtrend persists

Brent has continued to create new lows, with a break below $46.54 yesterday.

This is expected to continue apace and as such, a bearish view remains unless we see price break back above $47.60.

WTI consolidates ahead of likely move lower

WTI is also on a very consistent short-term downtrend. Price has been consolidating overnight, managing to remain below the $45.22 low from Wednesday.

Essentially this downtrend is expected to remain in place unless we see price post an hourly close above $46.16.

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