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Technical analysis: key levels for gold and crude

Gold has regained ground overnight, bringing the price back into a critical resistance level. Meanwhile, Brent has continued its descent, falling into the key $50 mark.

IG Analyst

Publication date : 2017-08-17T09:29:32+0100

Gold mining

Source: Bloomberg

Gold rallies into major resistance zone

Gold has broken sharply higher overnight, following on from yesterday’s Federal Open Market Committee (FOMC) meeting. This has taken us back into a crucial resistance zone.

A break above the $1292 resistance level is needed to continue the creation of higher highs. Should that occur, we would be looking towards the $1296 resistance zone, which if broken, would bring a bullish picture to the longer term. As such, whether we can break through the $1292-$1296 zone will be a major determinant for whether this market becomes bullish for both the short and medium/long term.

Gold price chart

Gold price chart

Gold price chart

Brent falls into key support level

Yesterday’s gains have dissipated for Brent, with the price falling back into the 200-period simple moving average (SMA) and $50 support level.

That level is a historical support and resistance level, alongside the near-term swing low. The ability or inability to break below that level should provide a guide for the day. An hourly close below that level should bring a signal of further impending downside.

Brent price chart

Brent price chart

Brent price chart

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