Technical analysis: key levels for gold and crude

Gold looks set for another challenge at the crucial $1264 level, while WTI manages to break through key Fibonacci resistance.

Oil pump
Source: Bloomberg

Gold rebounds towards crucial resistance level

Gold has been respecting trendline support over the past fortnight, with ascending lows accompanied by higher highs. However, looking back to late February, it is clear that we are trading around a crucial $1264 resistance level. The attempted break through that level last week was greeted by a sharp move lower.

As such, it is worth noting that the ability to break through this big resistance zone is going to be the key determinant of what this market looks like going forward. Watch out for resistance at $1261, $1264 and $1271. To the downside, a break below $1247 would provide a more bearish outlook.

WTI continues to gain ground

WTI has continued to push higher this week, with the price moving through the 76.4% retracement yesterday. Crucially, we have now seen that level being utilised as new support following yesterday’s resistance.

That provides us with a stronger chance that we are going to see a break back through or into the previous resistance zone around $55.00. As such, we could see further upside, with the continued creation of higher highs and higher lows key to further gains. 

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