Technical analysis: key levels for gold and crude

Gold attempts to regain ground following recent losses, while crude prices finally catch a bounce amid renewed hope of an OPEC deal.

Source: Bloomberg

Gold tests notable resistance level

Gold has been testing the key $1230 resistance level in the past 24 hours, as a sign that we could be due a bounce of sorts following the recent downturn.

Should we see an hourly close above $1230, then it would point towards a potential move into the 61.8% ($1245) or 76.4% ($1252) Fibonacci levels. However, the downtrend would remain intact unless we see a break and hourly close above $1265.

As such, we could either remain below $1230 for the bearish trend to stay in play, or else break through $1230 to provide a likely move to the $1245-$1252 resistance zone upon which the bearish outlook would come back into play. Only with a move above $1265 would a bullish outlook return.

Brent breaks back above resistance

Brent Crude rallied overnight after comments from OPEC signaled a drive to resolve the differences that currently undermine the drive to cut production levels.

This has brought price back above both the crucial $45.35 resistance level and the $45.48 swing high. As such, we could be set for a period of short-term strength off the back of renewed hope of a deal. With price heading northbound, there is the potential for further gains, with $46.30 the next resistance level of note.

However, a break back below $45.48 would provide a more bearish outlook once more.

WTI extends overnight gains

WTI similarly broke through two keys resistance levels, at $43.22 and $44.19. The next resistance level of note is $45.16, which is clearly within reach.

Over the short-term, we could see a continuation of this rally and thus as long as we do not see a break below $44.54, a short-term bullish outlook is in play.

However, a break below $44.54 would provide a more bearish tone. 

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