Technical analysis: key levels for gold and crude

Both crude and gold continue to consolidate, following recent gains. However, with crude trading around a multi-year resistance zone, we could see directional volatility come back into play soon enough. 

Oil plant
Source: Bloomberg

Gold uptrend remains intact

Gold is rallying after yet another sell-off which failed to break below the key $1260 support level. As such, the gradual recovery we have seen since the early October sell-off remains on track.

An hourly close above $1272 would provide us with a sign that we are breaking higher once more.

Conversely, an hourly close below $1260 would be a warning sign that the selling pressure could be coming back into play.

Gold

Brent consolidation continues

Brent has been seeing relatively choppy price action over the past three weeks, with price rotating between $51.23 and $53.94. We are currently in the ascendancy following a sharp deterioration into the lower end of the range. As such, further upside seems likely, with an hourly close above $52.72 providing a clue that we are heading towards the $53-$54 mark.

This consolidation takes place at a major resistance area historically and as such, a bullish breakout from here could provide a significant period of upside.

Brent

WTI turning higher following sell-off

WTI is similarly on the rise, with yesterday’s weakness providing us with another deep retracement within the $49.53-$52.22 range. An hourly close above $51.06 would provide a bullish short-term view for a move back into the $52 region. Similarly, we are at a crucial area of resistance historically, with a break above $52.05 providing a 15-month high.

As such, it makes sense to simply play the range until we see a breakout, which could spark a sustained period of directional volatility.

WTI

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.