The name of this website is energy & gold.com so it’s only fitting that we analyze the charts of gold and crude oil this weekend:
Gold (Weekly)
I’m going to sharpen my pencil here and say that we need a weekly close above $1308 to officially trigger a head & shoulders bottom breakout. The target for this breakout would be $1530+ which is roughly the level from which the April 2013 breakdown began.
WTI Crude Oil (Daily)
Crude oil began a powerful uptrend in February and pullbacks have been relatively shallow and short lived. Last week’s pullback found support at the rising 50-day simple moving average and previous resistance near $46.
WTI Crude Oil (Weekly)
Pulling it out to a weekly time frame we see that WTI ran into Fibonacci resistance in the form of the 38.2% Fibonacci fan and round number psychological resistance near $50.
Both crude oil and gold are in similar situations; both are in nascent uptrends and at interesting spots near areas of major resistance. Meanwhile crude oil is entering a seasonally bullish period for the next couple months while gold typically makes a major seasonal low at some point during the next few weeks.
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