Technical analysis: key levels for gold and crude

Gold is attempting to break through Fibonacci resistance amid a recent recovery. Meanwhile, Brent looks set for another leg lower after minimal retracement.

Oil rig
Source: Bloomberg

Gold reaches key Fibonacci resistance

Gold has rallied into the 76.4% retracement this week, following on from a rebound off trendline support. The wider trend points towards gold pushing upwards through the $1243 mark.

However, we also see the creation of lower highs and lows, which would be negated by a break through $1237. The respect or rejection of the 76.4% retracement will be a notable signal of whether we are set to break through $1237 and $1243. As such, watch for the reaction to this $1228 level as a gauge of whether we are set to respect the wider trend or more recent downtrend.

Brent begins to turn lower once again

Brent is turning lower once more this morning, following a minimal period of upside overnight.

A break below $61.96 would signal the beginning of the next leg lower, with further downside likely. The shallow nature of this recent retracement means we can utilise a close stop loss above the $64.72 swing high.

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