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Technical analysis: key levels for gold and crude

Gold has dropped back into trendline support, while Brent attempts to push higher off the back of recent declines.

IG Analyst

Publication date : 2018-06-12T09:07:34+0100

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Gold back into trendline support

Gold continues to consolidate around trendline support, with yesterday’s rally once again falling short around the 76.4% retracement at $1303.

The ability to break above that level, or below $1289, will provide us with the key determinant of direction from here on in. Given the previous respect of this trendline, there is a good chance we will see another move higher in the short term. However, the continued respect of the 76.4% retracement highlights that this period of sideways price action could yet prove to be a precursor to another leg lower.

Gold chart

Gold chart

Gold chart

Brent attempts to arrest the recent decline

Brent has managed to post a short-term rebound, following a decline that has been seen as a continuation of the recent period of downside.

This wider move does generally look like a multi-stage retracement before we head higher once more. However, for now there is a good chance that any upside falls short around trendline resistance, which will continue the bearish pattern seen over the past month. A break above $79.17 would bring the bullish view back into play.

Brent chart

Brent chart

Brent chart

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