Technical analysis: key levels for gold and crude

Gold looks to be coming back into favour, but will we see Fibonacci resistance send it lower once more? Meanwhile, a Brent triangle means we await a breakout for direction.

Mining
Source: Bloomberg

Gold breaking higher from trendline support

Gold has proved a tricky customer over the past 24 hours, with an initial break through triangle support failing to last, sending price higher. The subsequent break through the trendline and $1234 resistance has provided a more bullish picture. However, it is the respect of the triangle top as new-found support, which makes things look more bullish. The price has since rallied to the 76.4% retracement at $1238, which will be key to determining whether we are set for a bearish turn lower or not.

A strong rally through $1238 would provide a lower chance of this recent downturn persisting. However, with gold having broken out of an upward channel, there is a chance we could see a deep retracement within a bearish reversal. Ultimately, a reversal lower from here would point towards a good chance of the market being within a near-term top, while a break through $1245 would signal a resumption of the uptrend.

Gold chart

Brent trading within triangle formation

Brent is trading within a symmetrical triangle formation, set within a wider range. Given that we are seeing this pattern within the middle of a range, it makes sense to take our lead from the breakout.

An hourly close above $56.42 (bullish) or below $55.75 (bearish) would be the key signal for our near-term bias. That being said, remember that the wider range will dictate the state of play, and thus any break higher or lower could be short-lived.

Oil 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.