Technical analysis: key levels for gold and crude

Gold attempts to claw back some of its lost ground, while crude prices attempt to break through crucial long-term resistance.

Oil rig
Source: Bloomberg

Gold rally takes a breather

Gold is pulling back this morning, with price ranging between $1267 and $1273. Should we see an hourly close below this level, it would point towards a deeper retracement of yesterday’s rally, with trendline and Fibonacci support coming into play.

We would need to see an hourly close below $1260 to negate the bullish view, with any short-term pullback looking like an opportunity to get long for a move back above $1273.

Brent pullback unlikely to last

Brent has been selling off overnight, following a bullish triangle breakout yesterday. We are looking for Brent to surpass $53.95 in the near future and as such, this current retracement seems like a good opportunity to get long. A bullish outlook remains unless we see an hourly close below $51.71.

WTI expected to turn higher once more

WTI managed to break to a new 15-month high, bringing about the potential for a bullish breakout. We are seeing the price turn lower currently, yet as long as we do not see an hourly close below $51.01, then a bullish view remains.

The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.