Technical analysis: key levels for gold and crude

Gold looks set for another strong move higher, while Brent is showing signs of a potential next leg lower.

Gold breaking higher from triangle consolidation

Gold has been consolidating since the spike in early trade yesterday, with the price establishing a short-term triangle formation.

The price appears to be breaking sharply higher so far this morning, signaling the beginning of a potential next leg higher for gold. As long as we do not see the price fall below $1216, then further upside does look likely before long.

Brent falling back into key support zone

Brent crude is falling back into the crucial Fibonacci (61.8%) support level at $73.73, with the price showing signs of another potential impending sell-off.

Should we clear that support level, there is a strong chance we will see a move into the next Fibonacci support level of $78.17. With the price having formed a new lower high, we would need to see a break through $81.63 to signal a more bullish outlook.

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