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Technical analysis: key levels for gold and crude

Gold punches higher, yet could we be seeing signs of an impending pullback? Meanwhile, crude continues to rise, as we approach a notable long-term trendline resistance.

IG Analyst

Publication date : 2017-04-12T10:05:00+0100

Oil barrels

Source: Bloomberg

Gold rallies into trendline resistance

Gold has rallied sharply into trendline resistance over the past 24 hours, following a deep retracement that bottomed out on Monday. Crucially we have seen an ominous shooting star candle formed overnight, which when accompanied by a decreasing Moving Average Convergence Divergence (MACD) histogram and stochastic crossover, points towards a possible move lower from here.

Given the uptrend in place, such a pullback would likely be a short-term phenomenon before we move higher again. However, as long as the price remains below trendline resistance (currently $1280), it looks like we are set for a pullback. Should that come to fruition, it makes sense to look for the $1254-$1259 Fibonacci zone as a possible area to get long.

Gold price chart

Gold price chart

Gold price chart

WTI rally continues apace

WTI has continued its remarkably consistent ascent, with the price pushing into $54.00 this morning. This uptrend has shown precious little sign of slowing down of late, with the continued creation of higher lows and highs key to seeing this trend continue.

On this occasion, the most recent swing low is around $53.00. Unless we break below that level, bullish view remains. However, keep an eye on the long-term descending trendline resistance (currently $54.50) originating from mid-2015.

WTI price chart

WTI price chart

WTI price chart

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