Technical analysis: key levels for gold and crude

Gold hesitates despite wider bullish overview, while Crude prices continue to rise towards major resistance levels.

Gold
Source: Bloomberg

Gold drifting lower towards trendline support
Early gains from yesterday have eroded heavily for gold, with the market moving towards a crucial ascending trendline. This trendline has propped up the price over the past week and thus there is a good chance we could see any selling capped at this level.

Alongside this, we also have the $1271 support level, which could coincide to provide another bounce. Following the triangle breakout in late April, a bullish outlook came back into play once more and thus we look at this market with the view that the bullish medium-term picture will return eventually.

With that in mind, this current downside seems unlikely to last, with a break towards $1287 likely in the coming days. However, a closed hourly candle below $1263 would negate this bullish view.

Gold daily chart

WTI charges towards massive resistance level
It has been a very consistent start to the week for WTI, with yesterday’s gains continuing into today’s session. It is clear that with such a steady trend, most people will be buying on any short-term pullback.

However, looking at the weekly chart below, it is clear that the $51.24 level is absolutely crucial to price action over the coming days. Should we see a break through this level, then it could mean the worst is over for the market. However, an inability to match or regain that level would be a warning sign that the trend of lower highs and lows remain in play.

As such, any bullish positions should be taken with a knowledge that this $51.24 level is going to be crucial to the market mindset.

WTI daily chart

Brent continues to gain ground amid strong week
The price continues to move higher in a very convincing manner, following on from a substantial rally last week. While this provides a clear trend for people to jump onto, it is worthwhile waiting for a retracement for a better risk/reward ratio.

Any pullback to $48.32 in particular would be an interesting point for bulls to get long once more. The current bullish view would be negated with a break below $47.00.

Brent daily chart

Denna information har sammanställts av IG, ett handelsnamn för IG Markets Limited. Utöver friskrivningen nedan innehåller materialet på denna sida inte ett fastställande av våra handelspriser, eller ett erbjudande om en transaktion i ett finansiellt instrument. IG accepterar inget ansvar för eventuella åtgärder som görs eller inte görs baserat på detta material eller för de följder detta kan få. Inga garantier ges för riktigheten eller fullständigheten av denna information. Någon person som agerar på informationen gör det således på egen risk. Materialet tar inte hänsyn till specifika placeringsmål, ekonomiska situationer och behov av någon specifik person som får ta del av detta. Det har inte upprättats i enlighet med rättsliga krav som ställs för att främja oberoende investeringsanalyser utan skall betraktas som marknadsföringsmaterial.