Technical analysis: key levels for gold and crude

Crude appears to be back in favour as we expect further gains to follow on from last week’s strong end. Meanwhile gold is also returning to a positive trend.

Gold bars
Source: Bloomberg

Gold back on positive pathway
Following on from a period of weakness in late March, gold has begun to climb once more over the past week. This morning has seen initial gains erased and thus some form of retracement is a distinct possibility.

However, this would be deemed to be a short-term move should it occur and a bullish view holds unless we see an hourly close below $1238. For any such retracement, Fibonacci support levels at $1247, $1245, $1244 and $1242 would be the support levels to watch.

WTI looks to break-higher
Following an initial spike higher this morning, WTI has seen a sharp pullback. We are clearly trading in an upward manner over recent days, and thus this looks like a good area for us to possibly break-higher once more after the hammer candle posted last hour.

As such, a move back towards the $41.22 resistance level seems likely. This bullish view is negated with a closed hourly candle below $40.

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