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Technical analysis: key levels for gold and crude

Recent downside for gold and Brent could be short-term, with latest gains in place. However, Brent looks a more reliable trend compared with gold for now.

IG Analyst

Publication date : 2017-11-23T10:01:25+0000

Oil

Source: Bloomberg

Gold pulls back after sharp gains

Following a sharp appreciation, gold has drifted lower overnight, with the price rallying towards the $1297 region.

However, the stochastic indicator has been breaking back below 80 in a bearish manner, which raises a warning sign. As such, it makes sense to await a break above $1297 region to provide a signal that the recent bullish trend remains in place.

Gold price chart

Gold price chart

Gold price chart

Brent pulls back into trendline and SMA support

Brent has been retracing lower this morning, bringing the price back into trendline and 50-hour simple moving average (SMA) support.

With a clear uptrend in place over the short term, there is a good chance we could see another move higher from here. With that in mind, as long as the price does not break below $62.39, another move higher looks likely from here.

Oil price chart

Oil price chart

Oil price chart

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