Gold and Crude Oil Could Accelerate Declines

Gold price topped near the $1,237 level and declined recently. Crude oil price is under a lot of pressure and it may slide further towards the $60.00 or $58.00 levels.

Important Takeaways for Gold and Oil

  • Gold price traded higher nicely until sellers appear near the $1,236-1,237 zone against the US Dollar.
  • There was a break below a major bullish trend line with support at $1,226 on the hourly chart of gold.
  • Crude oil price declined heavily recently after topping above the $68.00 pivot level.
  • There is a key declining channel in place with resistance at $61.70 on the hourly chart of XTI/USD.

Gold Price Technical Analysis

Gold price followed a nice upward move from the $1,212 support area against the US Dollar. The price traded higher and it broke key resistances near the $1,220 and $1,224 levels before sellers appeared near $1,237.

The upside move was positive as the price broke the $1,230 resistance and the 50 hourly simple moving average as well. However, the price faced a lot of selling interest near the $1,236, $1,237 and $1,238 resistance levels.

Gold Price Technical Analysis Chart

A swing high was formed at $1,237.36 on FXOpen before the price started a downside move. It broke a major bullish trend line with support at $1,226 on the hourly chart. Besides, there was a break below the 61.8% Fib retracement level of the last wave from the $1,212 low to $1,237 high.

It opened the doors for more losses and pushed the price in a bearish zone below the $1,220 support. It seems like the price may continue to move down towards the $1,212 support area in the near term.

On the other hand, if there is an upside correction, the price may face sellers near the $1,221 level. Above $1,220-1,221, the price could retest the $1,225 resistance and the 50 hourly simple moving average where sellers are likely to emerge.

Overall, gold is currently following a bearish path towards the $1,212 support and any recovery is likely to face sellers on the upside.

Oil Price Technical Analysis

Crude oil price failed to hold gains above the $68.00 pivot level and declined heavily against the US Dollar. The price traded lower and broke a few key supports near the $66.00 and $64.00 levels.

The recent decline was such that the price even broke the $62.00 support and the 50 hourly simple moving average. It traded close to the $60.00 support recently and formed a low at $60.42.

Oil Price Technical Analysis Chart

At the moment, the price is consolidating losses and it could test the 23.6% Fib retracement level of the recent decline from the $62.50 high to $60.42 low. More importantly, there is a key declining channel in place with resistance at $61.70 on the hourly chart of XTI/USD.

Around the channel resistance, the 50 hourly SMA is positioned along with the 50% Fib retracement level of the recent decline from the $62.50 high to $60.42 low.

Therefore, if the price corrects higher from the current levels, sellers are likely to appear near the $61.20, $61.50 or $61.80 resistance levels.

On the downside, a downside break below the recent low at $60.40 will most likely increase chances of a push below the $60.00 support. The next major support in the mentioned case could be near the $59.40 level.

Aayush Jindal

Aayush has spent over a DECADE as a financial markets contributor and observer. He specializes in market strategies and technical analysis, comes with an IT background. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the currency, commodities, Bitcoin and Ethereum markets. He is a software engineer by profession, loves blogging and observing financial markets.

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