Technical analysis: key levels for gold and crude

Gold and Brent both gain ground overnight, with gold hitting trendline resistance and Brent breaking out of a symmetrical triangle.

Oil platform
Source: Bloomberg

Gold rallies into trendline resistance

Gold has continued its ascent overnight, with the price rallying into a crucial long-term trendline, dating back to mid-2016.

Given the importance of that trendline, it makes sense to look for any potential signs of reversal here. In particular, an hourly close below $1274 would point towards a period of weakness. Until then, the uptrend remains.

Gold price chart

Brent breaks higher from symmetrical triangle

Brent has finally shown its hand, with the price breaking higher from the symmetrical triangle formation that has been in play over the past fortnight. Given the break through $52.93, it looks like we could be set for further upside.

However, considering the wider, long-term picture, it makes sense to be weary of a potential bearish shift until we break above the $55.00 mark. A fall back below $51.82 would point towards a bearish move for Brent crude.

Brent price chart

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.