Gold price remains within triangle pattern while Brent price rallies out of consolidation phase
Gold turns lower from triangle resistance, while Brent manages to break higher after recent consolidation
Gold turning lower within symmetrical triangle formation
Gold is fading once more following a rally into trendline resistance that provides the upper boundary of a symmetrical triangle formation.
That consolidation phase looks set to continue, with the price moving towards the lower boundary of the pattern. As such, further downside looks likely for the short term, with this pattern expected to persist until we see a breakout through the first swing high or swing low. As such, watch for a break through $1497 for a bullish breakout signal, or below $1481 for a bearish one.
Brent surges higher from consolidation phase
A fall in US inventories helped push Brent crude higher from its consolidation phase, with the price having ultimately respected the 76.4% Fibonacci support level on two occasions before pushing higher.
This points towards a continuation of the uptrend seen since the early-October low of $56.08. With the price currently resting on the $60.52 level, there is a chance that we utilise this breakout level as new support. From here, further upside looks likely, with a break below $58.00 required to bring about a more bearish view once more.
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