Technical analysis: key levels for gold and crude

Gold continues its ascent amid wider market selling. Meanwhile, crude prices are regaining ground, yet it may not last long.

Oil refinery plant
Source: Bloomberg

Gold turning higher from trendline support

Gold continues to trend higher, with price trading within a rising wedge pattern. Overnight selling saw price fall into both trendline and 50-simple moving average support, which is now pushing price higher.

As such, it looks likely we will see a rally through Tuesday’s high of $1277. We would need to see a break below $1260 to negate this bullish view.

Brent back to key resistance level

Brent has gained ground overnight, bringing price back to the crucial $51.23 resistance level. Yesterday’s choppy price action means we have a clearly defined level at $51.64, where a break above would negate this bearish view.

However, until then, a bearish outlook remains in place, with the $51.23 level providing the key near-term resistance level.

WTI rally looks unlikely to last

WTI is also rallying, with price moving towards the key $47.90 resistance level. The initial break below that level marked a bearish signal that holds unless we see price break back above $50.22. 

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