- A bounce in the crude oil price might have been on the cards, as market sentiments sour again
- Gold price stuck between 1230-1241 region and the recent gain is unlikely to last long
- Gold price might fall towards its key resistance at 1211-1214 regions, as an upbeat crude price momentum may be forthcoming
Crude oil trying a timid recovery
Yesterday (24.10.2018), crude oil tried a timid recovery followed by numerous brutal sell-off sessions and a derailment of the renewed risk might have been on its way. However, the yesterday’s recovery could have been the beginning of a new upwind trend for the traditional head and shoulder pattern of crude oil.
Gold may fall as Crude Recovering risks
Looking forward, a rebound in the oil price is due and as a consequence, gold price might have fallen. Gold price has already tested 1240 region and currently being held between 1230 and 1241 region. As there is significant lack of market data, further gain of gold could not be anticipated. Nonetheless, a downward trend towards the key support at 1214 might be forthcoming.
Gold daily chart
On the other hand, the oil has shown several “up and go” between the “$65-$75” territory. After yesterday’s tiny come back, crude oil is now being traded at 66.34 (25.10.2018, GMT. 7AM) and a new upward momentum should have been on the table by now.
Crude oil daily chart
Technical levels to be eyed
At this moment, gold is being traded below 1234 and a downward move below 1220 is more likely to happen. On the flip side, gold might have been in between 1228 and 1238 regions, yet that is quite unlikely to happen. However, a break above the key resistance at 1241.46 could open up the window of opportunity to rise above 1260 region. Though, the chance of breaking below 1180.88 has not yet been out of the scene and a fallout below key support 1211, might expose that slippery slope as well.
The crude oil has digested severe sell-off pattern in the past few days, yet it has shown an ignition yesterday and, till now, its upward momentum is intact. So far, so good, crude oil is eyeing its key resistance above $70 region and a break above that would expose the previous highs of $75-$77 as well. On the flip side, the key support still resides at 64.30 for US crude.
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[Disclaimer: The content of this article is personal opinion and should not be considered as investment advice or suggestion towards any trading activity.]