Gold Price and Crude Oil Price Could Correct Lower

Gold price rallied recently above $1,325 and later faced sellers near $1,346. Crude oil price is placed in a bullish zone, but a break below the $56.75 support could trigger a downside correction.

Important Takeaways for Gold and Oil

  • Gold price tested the $1,345-1,346 resistance area and later corrected lower against the US Dollar.
  • There was a break below a major bullish trend line with support at $1,335 on the hourly chart of gold.
  • Crude oil price remained in an uptrend and it recently traded above the $57.00 resistance.
  • There is a crucial bullish trend line in place with support at $56.75 on the hourly chart of XTI/USD.

Gold Price Technical Analysis

In the past few days, there was a strong upward move from the $1,305 swing low in gold price against the US Dollar. The price gained momentum and broke the $1,320 and $1,325 resistance levels.

The price even broke the $1,340 resistance and the 50 hourly simple moving average. It traded towards the $1,345 resistance and formed a high near $1,346 on FXOpen. Later, the price started a downside correction and traded below the $1,340 support.

Gold Price Technical Analysis

There was also a break below a major bullish trend line with support at $1,335 on the hourly chart of gold. The price even broke the $1,325 support and the 50 hourly simple moving average.

A low was formed near $1,321 and the price is currently correcting higher. An initial resistance is near the 23.6% Fib retracement level of the recent decline from the $1,346 high to $1,321 low. In the short term, there could be an upward move, but it is likely that sellers appear near the $1,330 resistance.

The main resistance is near the $1,335 level and the 50 hourly simple moving average. The 50% Fib retracement level of the recent decline from the $1,346 high to $1,321 low is also near the $1,333 level.

Therefore, upsides are likely to be capped near the $1,330, $1,333 and $1,335 resistance levels. On the downside, the price could test the $1,315 support before a fresh increase.

Oil Price Technical Analysis

Crude oil price followed a strong uptrend this week and climbed above the $54.00 and $55.00 resistance levels against the US Dollar. The price gained pace and broke the $57.00 resistance to climb to a new monthly high.

It traded as high as $57.60 and settled above the 50 hourly simple moving average. Later, the price started a downside correction and traded below the $57.50 and $57.30 levels.

Oil Price Technical Analysis

There was a break below the 23.6% Fib retracement level of the recent wave from the $55.82 low to $57.60 high. However, there is a strong support formed near $56.75 level. There is also a crucial bullish trend line in place with support at $56.75 on the hourly chart of XTI/USD.

The 50% Fib retracement level of the recent wave from the $55.82 low to $57.60 high is also near the $56.75 level. Therefore, there are two possible outcomes – first, the price breaks the $56.75 support and correct lower towards the $55.00 support.

Alternatively, it could bounce back and break the $57.60 high in the near term. The next key resistance is near the $58.50 and $59.00 levels.

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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