Gold price rallied sharply and broke the $1,350 and $1,400 resistance levels. Similarly, crude oil price gained bullish momentum and broke the $55.00 resistance area.
Important Takeaways for Gold and Oil
- Gold price started a solid upward move after it broke the $1,380 resistance against the US Dollar.
- There is a connecting bullish trend line forming with support near $1,395 on the hourly chart of gold.
- Crude oil price traded above the $55.00 and $56.50 resistance levels.
- There is a major bullish trend line forming with support near $56.15 on the hourly chart of XTI/USD.
Gold Price Technical Analysis
Gold price formed a solid support base above $1,350 and recently rallied above $1,380 against the US Dollar. The price gained bullish momentum above $1,390 after the Fed indicated possibilities of a rate cut in the near future.
The recent upward move was strong since the price even broke the $1,400 resistance area and settled above the 50 hourly simple moving average. It climbed towards the $1,415 level and a new monthly high was formed near $1,411 on FXOpen.
The price is currently correcting lower below $1,410, with an initial support near the 23.6% Fib retracement level of the recent wave from the $1,379 low to $1,411 high.
On the downside, there are many supports near the $1,400 and $1,395 levels. There is also a connecting bullish trend line forming with support near $1,395 on the hourly chart of gold.
The trend line support coincides with the 50% Fib retracement level of the recent wave from the $1,379 low to $1,411 high. Therefore, if the price corrects lower, the $1,395 support area is likely to act as a strong buy zone in the near term.
On the upside, an initial resistance is near the $1,410 level, above which the price could climb above the $1,415 level. The next key resistance for the bulls is near the $1,420 level.
Oil Price Technical Analysis
After forming a support base, crude oil price started a decent upward move above the $54.00 resistance against the US Dollar. The price broke the $55.00 resistance area to move into a positive zone and start an upward move.
As a result, there were gains above the $56.00 and $57.00 levels. The price even traded above the $57.50 level and settled nicely above the 50 hourly simple moving average.
The recent swing high was formed at $57.74 and the price is currently consolidating gains. An initial support is near the $57.15 level and the 23.6% Fib retracement level of the recent wave from the $55.21 low to $57.74 high.
Moreover, there is also a rising channel forming with support near $57.15 on the hourly chart. If there is a downside break below $57.15 and $57.00, the price could correct lower towards the $56.50 support.
The 50% Fib retracement level of the recent wave from the $55.21 low to $57.74 high is also near the $56.50 level to act as a decent support. Besides, there is a major bullish trend line forming with support near $56.15 on the hourly chart of XTI/USD.
Therefore, if there is an extended downside correction, the price is likely to find a lot of buying interest near the $56.50 and $56.20 levels.