WTI Crude oil prices reached fresh highs at $47.72(3050) but were unable to hold on to resistance place which was a hurdle place as the formation of Double Top chart pattern has taken place. In this pattern, if current prices close above $48 then it will be invalid. If it reacts as per the pattern then the current level of highest prices will generate selling pressure to reach $46-$45 level.
Further I have analyzed the crude oil 4H chart which has taken the formation of “Rising Wedge Pattern” where prices are currently holding support slope line which has taken consolidation. The current scenario depicts, if the crude oil prices break below wedge support at $46.70 then the entire direction will turn to negative momentum and reach towards $46.02-$45 (2950-2900)
Alternatively, if it does not break below, then a strong support can be expected to rush towards upside resistance line at $48.40-$49(3030-3100) Traders are advised to maintain stop loss at $46.70(3000) as the prices will be under selling pressure anytime due to the oversupply of glut.
Gold prices reacted as per the Ascending Triangle chart pattern which has broken out above resistance area and indicates continues market rising towards upward.
Pattern displays bullish nature and continuous to move up to $1253(28600). However, it will take a strong support at $1234(28100) and pullback upward to further new resistance at $1253(28600)
Based on the previous technical observation, the 4hour chart has taken the formation of “Falling wedge pattern”. In this pattern, prices broke out slope resistance line at 1227(28000) closing a daily candle which affirms that the market scenario has turned from negative to positive momentum