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Technical analysis: key levels for gold and crude

Crude finds gains hard to come by, with trendline resistance coming into play. However, for gold, we have seen price reach the conclusion of a symmetrical triangle, with a volatile breakout expected.

Gold bars
Source: Bloomberg

Gold reaches triangle apex
Gold has reached the apex of a symmetrical triangle formation following a period of indecision. Given that we have seen this form at the bottom of a retracement, the preference is for this pattern to mark a bullish reversal.

However, for that to be confirmed, an hourly close above $1324 would be required to provide confidence in a move higher, with $1334, $1338 and $1347 the next key resistance levels. Alternately, a break back below $1303 would be required to bring about a bearish view. 

Gold daily chart

Brent selling from trendline resistance
Brent has attempted to regain ground amid a wider sell-off, yet seemingly a short-term trendline has formed to provide a backstop to any upside. We are currently seeing a move lower from this trendline and as such a bearish view remains in play.

With that in mind, as long as price remains below $45.30, another leg lower seems likely, with $44.50 the next support level of note. 

Brent chart

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