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Technical analysis: key levels for gold and crude

Both gold and Brent have been moving back into the wider bullish trend, but with key resistance up ahead for both, questions remain.

IG Analyst

Publication date : 2018-01-24T09:55:42+0000

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Gold punches higher yet again

Gold has managed to break higher again overnight, with the price pushing upwards once more this morning.

This has taken us to a new four-month high, where the next key resistance comes in around $1357. Until then, further upside is likely, with the creation of higher highs and higher lows on the hourly timeframe providing buying opportunities. As such, a bullish view remains in play, unless we break the near-term swing low, which is currently $1339.

Gold chart

Gold chart

Gold chart

Brent back on the front foot

Brent managed to bring a more bullish view back into play, with yesterday’s rally through the $69.39 resistance level.

While we are seeing weakness come into play, there is a good chance it will be a retracement before we move higher once more. That being said, it is worthwhile noting that the market remains at a critical long-term resistance zone, with the price needing to break above $70.00 to move clear. With that in mind, the bullish outlook provided by yesterday’s rally should be treated with caution, until we move away from this area.

Brent chart

Brent chart

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