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Commodities report: gold and crude

Oil rallies into key resistance, yet with gold at the top of a triangle, one seems likely to fall lower.

Gold
Source: Bloomberg

Gold at triangle top once more
Gold has been a big fan of symmetrical triangles of late, with price forming a third within the space of a month. We are currently selling off from trendline resistance, which seems likely to represent the top of this new triangle pattern. With indices breaking higher, there is clear strong risk-on sentiment which could see some selling for gold.

The stochastic is also in the process of breaking through a double-top neckline, following clear bearish divergence over the past 24-hours. As such, further downside seems likely to continue this pattern, with support levels of $1232 and $1217 the next in line. Alternatively, a break through $1253 resistance would point towards a bullish breakout.

Gold chart

WITI rallying towards key resistance zone
WTI has started the week in style, breaking towards the crucial $35.00 mark once more. The $35-$35.38 resistance zone will be crucial for this market and thus be aware that we will either see a bullish break or rejection around this area.

The past three trading days have provided us with a clear upward trending environment, yet it is worth bearing in mind that this zone will largely dictate the state of play going forwards. Resistance levels of note are $35.00, $35.38 and $37.86. Support levels to watch are at $33.97, $32.83 and $31.33.

WTI chart

Brent attempts to break higher
Brent is once more leading the way, as it breaks through the January high of $36.74 to challenge the February high of $37.24. The rising wedge pattern currently in formation points towards a likely break lower at some point, yet unless we see a closed hourly candle below $35.10, a bullish short-term view remains. Resistance levels of note are $37.24 and $39.20, with support at $36.10, $35.10 and $33.80.

Brent chart

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