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Technical analysis: key levels for gold and crude

Brent crude has bounced off its rising trend, while gold has stalled at $1235 but is already finding support.

Chris Beauchamp ChrisB_IG
Chief Market Analyst, London

Publication date : 2017-03-21T09:52:23+0000

Mining

Source: Bloomberg

Gold still has the momentum

A swift drop from $1235 has already been met with buying, confirming that there is still plenty of momentum behind this move for gold.

Nonetheless, we need to see $1235 recovered to clear the way to the $1260 zone. A failure to hold $1225 would be worrying for bulls, although additional support is possible around $1220.

Gold price chart

Gold price chart

Gold price chart

Brent eyeing a move higher

The Brent sell-off last week ran straight into the 200-day simple moving average at $51.45 and the rising trendline off the January low. These held, and now we see signs of a move higher.

Yesterday the hourly chart saw a dip below $51.50, but buyers came back and pushed the price back above $52. A new short-term higher low has been created, so now the price has to push above the $52.72 zone. A daily close below the March low of $50.34 would likely negate this outlook.

Brent price chart

Brent price chart

Brent price chart

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