Gold price declined heavily and broke the $1,300 support level to move into a bearish zone. Crude oil price might decline sharply if there is a downside break below the $56.25 support level.
Important Takeaways for Gold and Oil
- Gold price declined sharply after topping near the $1,330 resistance against the US Dollar.
- There is a short term bearish trend line formed with resistance at $1,288 on the hourly chart of gold.
- Crude oil price is forming a contracting triangle with support near the $56.25 level on the hourly chart of XTI/USD.
- There could be a sharp decline if the price trades below the $56.25 and $56.00 support levels.
Gold Price Technical Analysis
After a strong upward move, gold price faced a strong resistance near the $1,330 level against the US Dollar. The price started a fresh bearish wave and declined below the $1,320 and $1,310 support levels.
The decline was strong since the price even broke the $1,300 support level. Finally, there was a close below the $1,300 support and the 50 hourly simple moving average. The price moved below the $1,290 support and a low was formed near the $1,280 level on FXOpen.
Later, the price started consolidating gains and corrected above the $1,285 level and the 23.6% Fib retracement level of the recent decline from the $1,297 high to $1,280 low.
However, the price is facing a strong resistance near the $1,288 level. There is also a short term bearish trend line formed with resistance at $1,288 on the hourly chart of gold. The 50% Fib retracement level of the recent decline from the $1,297 high to $1,280 low is also near the $1,288 level.
If there is a break above the $1,288 and $1,290 levels, the price could recover towards the $1,297 level or the $1,300 resistance.
On the downside, the $1,280 support level is an important barrier for sellers. If they succeed in clearing $1,280, there is a risk of a downside break below the $1,275 level.
Oil Price Technical Analysis
Crude oil price rallied recently and broke the $56.50 and $57.00 resistance levels against the US Dollar. The price even broke the $57.80 resistance and traded towards the $58.00 level before starting a downside correction.
There were a couple of swing moves before the price broke the $56.50 and $56.20 support levels. A low was formed at $55.70 and later the price recovered to $57.23.
At the moment, the price is moving lower and it recently broke the $56.80 support. An immediate support is near the $56.50 level, the 50 hourly simple moving average, and the 50% Fib retracement level of the recent wave from the $55.70 low to $57.23 high.
More importantly, there is a contracting triangle formed with support near the $56.25 level on the hourly chart of XTI/USD. The triangle support is close to the 61.8% Fib retracement level of the recent wave from the $55.70 low to $57.23 high.
If there is a break below the triangle support and $56.20, the price could decline sharply in the near term. The next key support is at $56.00, below which the price may revisit the $55.75 support. On the upside, the main resistances are near $57.00 and $57.50.