Technical analysis: key levels for gold and crude

Gold and Brent continue their ascent, yet with both moving towards key Fibonacci resistance, could we see them turn lower soon enough?

Oil barrels
Source: Bloomberg

Gold consolidates within recent uptrend

Gold has been consolidating after Wednesday’s post Federal Open Market Committee (FOMC) rally, with the price trading around the 61.8% retracement region.

For now we have not seen anything to tell us that this recent uptrend is over and as such, further gains seem likely, with the 76.4% retracement at $1274 looking like an achievable target. A break back below $1244 would point towards a resumption of the weakness seen back in June. However, until then this consolidation looks like a precursor to further upside.

Brent continues to channel higher

Brent is continuing its ascent, with the price trading within a rising channel formation. Up ahead we have two key resistance areas worth watching out for in the form of the descending trendline, currently at $52.07, and the 76.4% retracement at $52.43.

 The wider perspective remains bearish and as such, a move into the 76.4% retracement would look like a good area to be looking for shorts. However, for now the short-term uptrend remains intact.

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