Gold and oil push into technical resistance zones
Gold and Brent crude oil enter technical resistance zones and may give back some of their recent gains as investors continue to worry about supply disruptions due to the war in Ukraine.
Gold probes $1,959 to $1,974 resistance zone
Yesterday gold entered its significant $1,959 to $1,974 resistance area as the war in Ukraine hit its one-month milestone.
This resistance zone is made up of the September and November 2020, January 2021, and February 2022 highs and as such is likely to cap. While this remains the case, a drop towards the current March low and the 61.8% Fibonacci retracement of the February-to-March advance at $1,895 to $1,890 may unfold.
On the way down minor support can be spotted at Tuesday’s $1.911 low. Were a daily chart close above the $1,974 level to take place today, however, the psychological $2,000 mark would be back in the limelight.
Brent’s rally beginning to run out of steam
Brent crude oil’s rally off it four-month uptrend line at $96.61 provoked a near 25% rise in under two weeks as the European Union (EU) considers beefing up sanctions on Russian crude.
The oil price has risen to the $116.48 to $120.48 minor resistance zone which contains the 3, 10 and 24 March highs. While this resistance area prevents further upside, a slide back towards the 4 March $109.02 low may ensue with the next lower 9 March low at $104.25 representing another possible downside target.
Further down sits the 24 February high at $102.58 above the minor psychological $100 mark. Were the $120.48 high to be exceeded, however, the early March high at $131.51 would be back in the frame.
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