Gold price started a downside correction after it climbed towards the $1,360 resistance area. Crude oil price seems to be forming a breakout pattern and is preparing for the next break.
Important Takeaways for Gold and Oil
- Gold price started a downside correction after trading as high as $1,258 against the US Dollar.
- There was a break below a key bullish trend line with support at $1,342 on the hourly chart of gold.
- Crude oil price recovered recently and traded above the $52.00 resistance area.
- There is a major contracting triangle forming with resistance near $53.00 on the hourly chart of XTI/USD.
Gold Price Technical Analysis
Gold price found support near the $1,320 level and climbed above the $1,340 resistance area against the US Dollar. The price even broke the key $1,350 resistance area to climb further higher.
The upward move was strong as the price traded close to the $1,360 level. A swing high was formed near $1,358 on FXOpen before the price started a major downside correction.
It broke the $1,355 and $1,350 support levels to move into a short term bearish zone. Moreover, there was a break below a key bullish trend line with support at $1,342 on the hourly chart of gold.
Finally, the price spiked below the $1,340 level and the 50 hourly simple moving average. A swing low was formed at $1,336 and the price is currently recovering higher.
It is trading near the $1,342 level, the 50 hourly simple moving average, and the 23.6% Fib retracement level of the recent decline from the $1,358 high to $1,336 swing low.
On the upside, there are many hurdles near the $1,344 and $1,347 levels. The main resistance is near the $1,347 level plus the 50% Fib retracement level of the recent decline from the $1,358 high to $1,336 swing low.
A successful close above the $1,347 and $1,348 levels might start a fresh increase towards the $1,355 and $1,360 resistance levels. Conversely, if the price fails to climb above $1,344 and $1,347, it could decline again below $1,340 and $1,335.
Oil Price Technical Analysis
After a steady decline, crude oil price found support near the $51.00 level against the US Dollar. The price started a slow and steady rise above the $5,120 and $51.50 resistance levels.
The price even managed to recover above the $52.00 barrier and the 50 hourly simple moving average. The recent swing high was formed at $53.21 before the price corrected lower.
It traded below the $53.00 level and the 23.6% Fib retracement level of the recent wave from the $51.92 low to $53.21 high.
However, the decline was protected by the $52.50 level plus the 50% Fib retracement level of the recent wave from the $51.92 low to $53.21 high. The price is now moving higher and is trading near the $52.90 and $53.00 resistance levels.
Moreover, there is a major contracting triangle forming with resistance near $53.00 on the hourly chart of XTI/USD. If there is an upside break above the $53.00 barrier, the price could continue higher towards $53.20 and $53.50.
On the downside, the main support is near the $52.40 level, below which crude oil price might start a fresh decline below the $52.00 support area.
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