Technical analysis: key levels for gold and crude

Gold threatens recent gains with potential double top, while Brent rallies into a crucial resistance level that will pave the way for price action from here.

Oil pipes
Source: Bloomberg

Potential double top in gold

Gold has been consolidating over the past 48 hours, with the price moving back in towards $1236 this morning. A break below that level would complete a short-term double top formation.

With that in mind, this chart needs to start moving higher from here, or else things could become more bearish over the short term. An hourly close below $1236 would point towards a possible move into the projected target of $1227.

Brent trading under crucial resistance level

Brent rallied into the crucial $49.92 resistance level yesterday, bringing about the possibility of a more protracted period of strength. A break through $49.92 would complete the creation of higher highs alongside the recent higher low.

As such, given the importance of this level, watch out for the response to it as a gauge of where we will go from here. An hourly close above $49.92 should pave the way for a more protracted period of strength, whereas an inability to break higher could lead to some sort of pullback in the short term.

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