Gold back to major support trendline, US Crude at crucial support level, Brent leads the way, breaking to 19 day low

Gold back to major support trendline

Today we are looking at the wider picture for Gold, which has returned to a major trendline support. This trendline originates from the symmetrical triangle formed through the February-April period. How Gold reacts to this trendline will be crucial to the day’s price action. Given the uptrend in place over the past five months, there is a good chance people are looking to get long. With that in mind, a break higher and through the near term resistance at $1268 could provide a spark to see this market surge today. Alternately, a closed hourly candle through trendline support could provide yet another flush lower to continue the recent downtrend.

US Crude at crucial support level

US Crude fell heavily towards the $43.58 support level yesterday, in a continuation of the sideways consolidation we have seen over the past two weeks. This $43.58 level will be crucial to the day’s price action, where a continuation of this range is likely until we see an hourly close below $43.58. Should that occur, the next support levels of note are $42.70 and $42.03. However, with price currently at the 76.4% retracement, a rally towards $46.00 is still a clear possibility from this deep retracement.

Brent leads the way, breaking to 19 day low

Brent has already seen a break lower, falling below $44.18 yesterday. This is a distinct warning sign for those trading US Crude, with a head and shoulders pattern pointing to a high likeliness of further losses. In particular, a closed hourly candle below $43.52 would likely spark another leg lower. Given that the head and shoulder projection comes in around $40.00, there could significant downside to come. However, a break back through $46.43 resistance would negate this bearish view.

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