Technical analysis: key levels for gold and crude

Gold and crude go their own ways, with gold heading for a five-month high, while Brent looks set for another leg lower.

Gold heading towards five-month high

Gold has broken from its short-term retracement, with a break through the $1247 mark providing the signal that we are set to rise through the $1250 mark.

Should that occur we would have set a new five-month high, extending this current bullish leg that has been in play for over a month. Thus, look for a break through $1250 to provide further short-term upside.

Gold chart

Gold chart

Brent looks set for another leg lower

Brent crude has broken below the key $58.48 support level this morning, falling out of the gradual ascendancy that has been playing out since OPEC+ (which is the Organisation of the Petroleum Exporting Countries [OPEC] plus the inclusion of non-members such as Russia, Mexico and Kazakhstan, among others) cut production.

The fact that we have seen a breakdown from the recent trend of higher highs and higher lows means that the next rebound is likely to fall short of the $62.07 peak reached on Thursday. As long as we do not break through that $62.07, a bearish outlook is in play where any short-term upside is seen as a selling opportunity rather than a reason to become bullish.

Brent crude chart

Brent crude chart

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