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Technical analysis: key levels for gold and crude

Gold consolidation is expected to spark another leg higher, while Brent turns lower once more following a deep retracement.

CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.
Gold bars
Source: Bloomberg

Gold triangle points towards further gains

Gold is trading within a symmetrical triangle formation, following a sharp appreciation on Friday. This rally works in favour of our bullish short-term and medium-term outlook and as such, further gains are likely. Essentially, we are looking for an intraday close above $1352 for a bullish continuation signal.

Otherwise an hourly close below $1346 would point towards a deeper retracement, with $1344 and $1338 the next key support levels. 

Brent turns lower from deep retracement

Brent is in the process of reversing lower once more, following a rally into the 76.4% retracement. This downtrend has been remarkably consistent and as such, it is worthwhile remaining with the trend until we see anything to tell us otherwise.

As such, a bearish view remains for a move back below $42.52, with that outlook negated with an hourly close above $44.13.

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CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.