Technical analysis: key levels for gold and crude

Gold appears to be heading towards $1200, with price breaking through a key resistance level this morning. Meanwhile, a sharp deterioration in crude is slowly being reversed, with the uptrend still intact.

Gold bars
Source: Bloomberg

Gold attempts to break back into bullish trend

Gold has been gaining ground since hitting the 76.4% retracement in December. We are seeing further gains coming into play in 2017, with price challenging the key $1165 resistance level.

An hourly close above $1165 would provide a bullish signal, with the $1181 and $1200 levels coming into view. We would need a break back below $1146 to negate this bullish outlook.

Brent falls into key Fibonacci support level

Brent crude saw significant selling yesterday, wiping out a week’s worth of gains. That deterioration took us into the 76.4% retracement level, providing a cheap long entry.

We are now gaining ground from that $55.55 level. A bullish outlook will be in play unless we break back below $54.65.

WTI attempting to claw back ground

WTI also saw amplified losses yesterday, with many struggling to explain exactly why. In any case, this brought us back to the 76.4% retracement.

While the sharp nature of that sell-off is a little bit of a worry, a bullish outlook remains as long as the price remains above $52.16.

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