Gold Remains in Uptrend, Oil Could Continue Lower

FXOpen

Gold price is trading nicely above the $1,210 support with a bullish bias. However, crude oil price is trading lower and upsides are likely to be capped near $72.00.

Important Takeaways for Gold and Oil

  • Gold price gained traction recently and traded above the $1,224 resistance against the US Dollar.
  • There is a short-term bullish flag pattern forming with resistance at $1,222 on the hourly chart of gold.
  • Crude oil price declined recently and traded below the $72.00 and $71.20 support levels.
  • There is a bearish trend line in place with resistance at $71.40 on the hourly chart of XTI/USD.

Gold Price Technical Analysis

Gold price started a nice upside move after forming a base near the $1,184-1,185 zone against the US Dollar. The price traded higher and broke the $1,200, $1,205 and $1,220 resistance levels.

The upside move was strong as the price even traded above the $1,224 resistance and settled above the 50 hourly simple moving average. The price formed a high at $1,226 and later started consolidating in a range.

Gold Price Technical Analysis Chart

At the moment, it seems like there is a short-term bullish flag pattern forming with resistance at $1,222 on the hourly chart of gold. The price recently tested the 23.6% Fib retracement level of the last wave from the $1,191 low to $1,226 high.

In the short term, there could be a couple of swing moves below $1,225, but the overall price action is positive. On the upside, a break above the $1,225 and $1,226 resistance levels could open the doors for more gains towards the $1,230 level.

On the downside, below $1,218, the next major support is near the $1,210 level. It also coincides with the 50% Fib retracement level of the last wave from the $1,191 low to $1,226 high.

Overall, the price remains well positioned for more gains as long as the price is above the $1,210 support area.

Oil Price Technical Analysis

Crude oil price formed a major top near the $77.00-78.00 zone against the US Dollar. The price started a major downside correction and declined below the $75.00 and $74.20 support levels.

The downside move was strong as the price broke the $72.00 support and settled below the 50 hourly simple moving average. The decline was such that the price traded close to the $70.00 level.

Oil Price Technical Analysis Chart

A low was formed at $70.35 and the price is currently correcting higher. An initial resistance is close to the 23.6% Fib retracement level of the recent decline from the $74.95 high to $70.35 low.

Moreover, there is a bearish trend line in place with resistance at $71.40 on the hourly chart of XTI/USD. Above the trend line resistance, the price may test the $71.70 resistance. The most important resistance for buyers is near the $72.50 level.

Moreover, the 50% Fib retracement level of the recent decline from the $74.95 high to $70.35 low is also around the $72.50-60 zone.  Therefore, if the price continues to correct higher, it could face a lot of selling pressure near the $72.00 and $72.50 levels.

On the downside, the recent low of $70.35 is a short term support, below which the price could break the $70.00 support to move further into the bearish zone.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Stay ahead of the market!

Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.

forex

Forex Trading with FXOpen

Forex Trading with FXOpen

Experience ECN technology for deep liquidity and light-speed trade execution

  • Access over 50 markets
  • Trade with spreads from 0.0 pips
  • Take advantage of commissions from $1.50/lot
Learn more

Latest articles

Indices

DAX 40 Index Closes Above 20,000 for the First Time

On 24 October, we noted that the DAX 40 stock index (Germany 40 mini on FXOpen) was losing bullish momentum and could break downward from the Bearish Rising Wedge pattern (marked with black lines).

Since then, as indicated by the

Shares

Apple (AAPL) Stock Hits Record High

The Apple (AAPL) stock chart reveals:
→ Yesterday’s closing price exceeded $242 for the first time in history.
→ The stock has risen nearly 30% since the start of 2024.
→ Over the past 30 days, it has gained approximately 9%.

Dan

Forex Analysis

Yen Strengthens on Rate Hike Expectations; Euro Tests Recent Lows

USD/JPY

Over the past week, the USD/JPY pair dropped by approximately 500 pips. As anticipated, sellers tested the critical 150.00–149.00 range. This level may serve as the starting point for an upward corrective rebound.

The

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.