Technical analysis: key levels for gold and crude

Gold and Brent are both in bullish mode, with the breakthrough key resistance levels looking set to provide further upside to come.

Gold breaks into near 10-month high

Gold has managed to break through the $1326 resistance level today, following up on a period of consolidation which bottomed out at $1303.

This current breakout points towards further upside, with previous examples proving that this market tends to gravitate towards $1357-$1375 resistance. As such, further gains seem likely, with a break below $1323 required to bring about questions over this breakout.

Gold chart

Gold chart

Brent consolidates after recent uptrend

Brent has finally hit the buffers after a period of sharp gains last week. This took us above the $63.75 level, bringing about a bullish wider picture after the completion of an inverse head and shoulders formation evident on the daily timeframe.

However, for now it makes sense to watch for the breakout from this consolidation phase. An hourly close below $65.93 would provide a bearish short-term picture, while an hourly close above $66.81 would signal the likely beginning of the next leg higher for Brent.

Brent crude chart

Brent crude chart


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