Technical analysis: key levels for gold and crude

Both gold and crude are starting to look bullish once again following on from their respective pullbacks.

Gold rallies back into notable resistance level

Gold has rallied from trendline support, with the price reaching the $1205 resistance level this morning. The ability to break through that level will be key in determining whether we are set for another push out of this consolidation phase.

Given the recent creation of higher highs and higher lows, there is a strong chance that we will see gold push upwards and out of this phase. However, a break above that $1205 level is going to be key in that, providing greater confidence that we are set for an extension to the overnight gains. We would need a break below $1193 to negate the current bullish outlook for gold.

Brent pushing higher after recent retracement

Brent has been on the rise this week, as the market attempts to recover from the losses of last week.

Given the pullback into the 61.8% retracement and subsequent rally through the $78.58 swing high, there is a good chance that we will see further gains from here. Thus, a rally through $80.00 seems likely before long, with a fall below $75.58 required to negate the wider bullish trend.

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