The Commodity Charts That Matter
Gold Coming into Key Support for Bulls
Gold has been on a very strong run that we've been following since the beginning of this year after basing at a massive area at 1045. After taking out the very key falling wedge pattern (in blue), we took out short stops and made a high at 1260.8. Given we had an exhaustive move, there was quite a lot of air in the market (as pointed out in last week's Weekly Market Wrap) and the we are now coming back into levels where the bulls might step in again. The key area to watch is the 1189 area which is the high of Octobetr 2015.
Oil Double Bottom?
WTI crude oil has been the king of the market recently as most market participants should very well know by now. Technically, we have now found a bit of a base in the commodity with a potential Double Bottom pattern forming at $26. The key pivot zone ahead between 33.85 and 34.82 is critical for bullish sentiment in that if we can breach this area, the Double Bottom is confirmed and we are also back inside the Falling Wedge pattern, which is typically an excellent reversal pattern as we have seen in the Gold price action. A move back below $26 will nullify this hypothesis
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