Technical analysis: key levels for gold and crude

Gold looks set to continue its recent gains, while Brent is attempting to experience a more bullish phase following Wednesday’s rally within a long standing downtrend.

Oil rig Source: Bloomberg

Gold continues to trend upwards

Gold has been remarkably consistent of late, with the recent rally taking us into a six-month high today. We have seen precious few signs to say that this is about to end, with a drop below the most recent swing low of $1264 required to negate the recent intraday element of this uptrend.

Beyond that we can start looking at wider elements of the trend, yet if we remain above $1264, a bullish short-term outlook remains in play.

Gold chart

Gold chart

Brent drifting lower after recent rebound

Brent crude managed to rebound sharply on Wednesday, providing us with an intraday higher high. This points towards a potential bullish phase coming into play as we retrace some of the wider $63.75-$50.26 move.

Watch out for trendline and Fibonacci resistance if we do see further upside. Only with a break below $50.26 would we look likely to resume the wider downtrend without any further upside.

Brent crude chart

Brent crude chart


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