Technical analysis: key levels for gold and crude

Gold tumbles out of its recent triangle pattern, bringing a more bearish outlook to proceedings. Meanwhile, Brent is starting to turn higher once more from the key 76.4% Fibonacci support level.

Oil barrels
Source: Bloomberg

Gold breaks lower from triangle

Gold finally broke out of the triangle formation on Friday, with price moving in a countertrend manner to push below the key $1333 swing low. Price has essentially rotated around that area since, with a clear degree of hesitancy for the next move. With the stochastic clearly oversold, there is a chance we will see a move higher from here.

However, even if that does occur, Friday’s move provides a more bearish picture for now. Price is trading within a small symmetrical triangle pattern and as such, we are likely to gain a directional bias from the breakout.

Brent moving higher from Fibonacci support

Brent has pulled back into Fibonacci support, with the 76.4% retracement marking the low of the day so far. Brent is clearly within a strong uptrend and as such, further gains seem likely unless we see an hourly close below $49.66. The next resistance level to watch out for is Friday’s high of $51.40.

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