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Technical analysis: key levels for gold and crude

Gold and Brent continue to move higher, yet with the latter hitting key resistance, we await a breakout for the next leg higher.

IG Analyst

Publication date : 2017-12-21T09:41:42+0000

Gold

Source: Bloomberg

Gold pullback brings buying opportunity

Gold has retraced once more, set within a rising wedge formation in place throughout the week.

With the price moving into trendline support, having hit the 61.8% retracement, there is a strong chance that we will see the price begin to rise once more from here. The rising wedge formation itself is a bearish pattern, yet we would need to see the price break below $1262 to negate this recent uptrend.

Gold chart

Gold chart

Gold chart

Brent begins to weaken from key resistance

Brent is starting to see some selling come into play this morning, following a strong move higher throughout the week thus far.

An hourly close above $64.29 would give a clue that we could be set to follow up last week’s bullish breakout, with a move back above $65.42. Until then, there is a chance we could see the price pull back somewhat following recent gains.

Brent chart

Brent chart

Brent chart

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