Technical analysis: key levels for gold and crude

Gold approaches crucial Fibonacci support level, with the market likely to turn higher. Meanwhile, crude has managed to continue its bullish post-OPEC trend, with price breaking above crucial resistance levels this morning.

Gold sells off into Fib support

Gold managed to post another leg lower on Friday, following on from a significant deterioration earlier into last week. We have now seen price fall back towards the 76.4% retracement level, which could provide an interesting area for longs. Given the short-term downtrend, another leg lower would not be surprising.

However, with price now coming into the lower end of a bullish descending triangle pattern, another move towards the upside seems likely soon enough. This bullish view remains unless we see a closed daily candle below $1300.

Gold

Brent breaks through key resistance level

Brent is continuing its ascent following last week’s OPEC output cut. Crucially we are seeing price rally through the $50.25 resistance level which points towards further gains to come.

As such, a bullish outlook is in play, with near-term hurdles coming in at $50.95 and $51.38. 

Brent

WTI approaching key level

WTI is similarly breaking higher this morning, following on from last week’s sharp gains. The break and close back above $48.12 on Friday pointed towards a bullish rally which is now coming to fruition.

With the $49.30 resistance level in view, we have another crucial area where the ability to break and hold above that level would provide us with another high likeliness of further sharp gains.

However, given the importance of this level (three-month high), watch out for how price responds to this area of resistance as to whether this clear bullish trend is under threat.

WTI

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