Technical analysis: key levels for gold and crude

Gold continues to hesitate as we await a potential push higher from this consolidation. Meanwhile, Brent trades within a triangle formation, above a crucial long-term support level.

Gold bars
Source: Bloomberg

Awaiting gold breakout

Gold pulled back to $1209 support yesterday following a failure to break through the all-important $1219 mark. Following a break and retest of $1200 last week, there is reason to believe we will see gold push higher in a meaningful manner. We would need a convincing break through $1219 to provide greater confidence that this is about to occur.

Conversely, an hourly close below $1209 would bring about a question over whether we could soon be back at the key $1200 level.

Brent rallying into key Fibonacci resistance

Brent crude is moving higher once more this morning, with price continuing to trade within a symmetrical triangle formation.  Interestingly, the trendline resistance ahead also coincides with the 76.4% retracement, providing a good shorting opportunity.

Conversely, given the existence of the long-term inverse head and shoulders neckline around $53.00-54.30, a reversal higher is certainly a possibility. Yet we would need to see a break through $57.19 to provide a bullish outlook. Until then, there is a good chance we will see this rally sold into once more.

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