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CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

Technical analysis: key levels for gold and crude

Both gold and Brent look likely to gain ground, amid a resurgence in commodities. However, with a rising wedge in gold and a resistance zone for brent, challenges remain.

Oil
Source: Bloomberg

Gold gains, but wedge could point to pullback

Gold has been gaining ground overnight, as the market extends the gains seen throughout the week. On a wider context, there is a good chance we have bottomed out, and as such further upside seems likely.

However, with a bearish rising wedge forming, a break below $1290 would point towards a possible short-term retracement. However, until that happens, the bullish outlook remains in place.

Brent rallies into key resistance zone

Brent has rallied through the $56.99 resistance level this morning, in what looks like a signal of impending upside. The weakness we have seen over the past three weeks could be over, with the creation of a higher high coming after the higher low yesterday.

Watch out for the $57.19 level as the next resistance point of note, where an hourly close above there points towards a possible rally up to the previous high of $58.93.

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