Technical analysis: key levels for gold and crude

Gold turns lower, but could the stochastic indicator highlight a possible bullish shift? Meanwhile, Brent continues to knock on the door at a hugely significant resistance zone.

Oil barrels
Source: Bloomberg

Gold divergence could point towards bullish break

Gold is turning lower following a sharp rally yesterday, with the price passing the 76.4% retracement. We would need to see a break up through $1283 to negate the continued creation of lower highs and lower lows.

That being said, the stochastic indicator is providing a bullish divergence, with higher highs being indicated despite the lower lows currently in place on the price. Given that this comes after the market returned to the wider 76.4% retracement ($1271), there is a good chance we could start to see this market move higher from here. A rally above $1283 would be the safest way of saying such a move is happening.

Gold price chart

Brent continues to challenge key resistance

Brent remains stuck below the highly significant $58.48 resistance level this morning. This level is key to determining whether the recent upside is going to persist for a longer period.

Given the recent shift from lower highs and lows to higher highs and lows, there is a good chance we will finally see that bullish breakout. However, it may make sense to wait for a break or reversal around this crucial $58.48-58.93 resistance region. A break back below $56.96 would point towards a bearish reversal from this area.

Oil price 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.