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Technical analysis: key levels for gold and crude

Gold is expected to break higher amid short-term retracement, while Brent prices look set for further downside.

IG Analyst

Publication date : 2018-10-18T09:33:35+0100

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Gold retraces after recent rally

Gold has been retracing after the rally seen on Monday, with the dollar strength denting its bullish resurgence.

There is a strong possibility that this is a precursor to another leg higher. However, it is also worth being aware that a break below $1216 would provide a more bearish signal. With that in mind, a bullish picture remains in place unless we break below $1216.

Gold chart

Gold chart

Gold chart

Brent breaks lower from consolidation phase

Brent managed to break lower following the continued respect of the $81.63 resistance level.

That builds on the bearish pattern in play over recent weeks, pointing towards further downside. Given the relatively minimal decline beyond the $79.64 support level, it looks like we should have further left in the tank, with a bearish view holding unless we break above the $81.63 level.

Brent chart

Brent chart

Brent chart

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