Technical analysis: key levels for gold and crude

Gold and Brent experience short term gains amid wider downtrends. Yet how long will this last?

Oil rig
Source: Bloomberg

Gold’s pullback could bring further upside

Gold has been trading higher in a consistent manner this week, coming off the back of Friday’s break through the key $1229 resistance level.

Given the bullish short-term view, this current retracement looks like a possible buying opportunity. The preferred area for longs comes at $1234-1235 given the risk-to-reward implications. A break back below $1233 would negate this bullish short-term outlook.

Brent begins to turn higher once more

Early losses appear to be abating for Brent, with the price having failed to break below the notable $48.27 support level. Ultimately, we would need to see a break back below $47.30 to bring about a more bearish picture once again.

However, in the short term, it is worth watching the ability to maintain the price above $48.27 as this could also be used as a swing low, above which the market could turn back into the short-term uptrend. 

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