Gold Gaining Momentum While Oil Stays Bearish

Gold price started a solid upward move from the $1,238 low and broke the $1,260 resistance. Crude oil price remains in a downtrend and it could decline below $43.00 in the near term.

Important Takeaways for Gold and Oil

  • Gold price gained a lot of bullish momentum above the $1,270 resistance against the US Dollar.
  • There is a major ascending channel with support at $1,269 on the hourly chart of gold.
  • Crude oil price is struggling to move past the $46.00 and $47.00 resistances.
  • There is a key bearish trend line formed with resistance at $46.20 on the hourly chart of XTI/USD.

Gold Price Technical Analysis

Gold price remained a significant uptrend and it started a solid upward move from the $1,238 swing low against the US Dollar. The price broke the $1,240 and $1,255 resistance levels to enter a medium term uptrend.

There was a proper close above the $1,260 resistance and the 50 hourly simple moving average. The price climbed above the $1,270 and $1,275 resistance levels. A high was formed at $1,279 and later the price corrected lower.

Gold Price Technical Analysis Chart

Sellers pushed the price below the $1,270 level and the 38.2% Fib retracement level of the last wave from the $1,253 low to $1,279 high. However, the price found support near the $1,265 level.

More importantly, there is a major ascending channel formed with support at $1,269 on the same chart. Besides, the 50% Fib retracement level of the last wave from the $1,253 low to $1,279 high. Should there be a downside break below the $1,266 and $1,265 support levels, there could be a strong downward move towards the $1,260 support.

On the upside, there is a major resistance at $1,279-$1,280, above which the price could move towards the $1,285 and $1,290. The next major resistance is near the $1,300 level.

Oil Price Technical Analysis

Crude oil price declined further below the $47.00 and $45.00 support levels against the US Dollar. The price even broke the $44.00 support level and traded towards the $42.00 level.

A low was formed at $42.11 and later started an upward move. The price jumped above the $45.00 and $46.00 resistance levels. However, the price struggled to clear the $47.00 barrier. Besides, there is a key bearish trend line formed with resistance at $46.20 on the hourly chart of XTI/USD.

Oil Price Technical Analysis Chart

The price is moving lower and it already broke the $45.00 support plus the 38.2% Fib retracement level of the recent wave from the $42.11 low to $47.01 high. If the price continues to move down, there could be more losses below the $43.00 support.

An intermediate support is near the $43.20 and the 76.4% Fib retracement level of the recent wave from the $42.11 low to $47.01 high. Any further losses are likely to lead the price towards the $42.00 and $40.00 levels.

The overall market sentiment is still bearish for crude oil and it seems like there could be a downside extension below the $44.00 and $43.00 support levels. On the upside, the main barrier for buyers is near the $46.00 and $47.00 levels, above which there could be the start of an upward move.

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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