Technical analysis: key levels for gold and crude

Crude and gold look set for further upside. While Brent has posted a strong rally from a falling wedge, gold needs to turn higher amid an overnight period of weakness.

Gold rebounds comes under pressure

Gold has been drifting lower since yesterday’s early push higher, with the price coming close to testing the 76.4% support level at $1254.

The wider context shows a strong potential for a rebound from this recent push higher, yet we need to remain above $1251 to provide a continued bullish theme. As such, a bullish outlook remains, but a break below $1251 would raise the likeliness of a challenge of the critical $1236 support level.

Brent breaks higher from wedge pattern

Brent has managed to rally through the $78.42 swing high this morning, confirming the bullish breakout from a falling wedge pattern.

This looks likely to set up a rally into the $80.49 support level, with $79.54 the first hurdle to overcome. 

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