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Technical analysis: key levels for gold and crude

Gold looks set for another strong move higher, while Brent is showing signs of a potential next leg lower.

IG Analyst

Publication date : 2018-10-16T09:37:36+0100

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Gold breaking higher from triangle consolidation

Gold has been consolidating since the spike in early trade yesterday, with the price establishing a short-term triangle formation.

The price appears to be breaking sharply higher so far this morning, signaling the beginning of a potential next leg higher for gold. As long as we do not see the price fall below $1216, then further upside does look likely before long.

Gold price chart

Gold price chart

Gold price chart

Brent falling back into key support zone

Brent crude is falling back into the crucial Fibonacci (61.8%) support level at $73.73, with the price showing signs of another potential impending sell-off.

Should we clear that support level, there is a strong chance we will see a move into the next Fibonacci support level of $78.17. With the price having formed a new lower high, we would need to see a break through $81.63 to signal a more bullish outlook.

Brent price chart

Brent price chart

Brent price chart

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