Gold and Brent crude hit trendline resistance
Gold and Brent could decline, with trendline resistance coming into play. However, crude prices look likely to break higher before long.
Gold declines likely to continue after hitting trendline resistance
Gold has been on the slide over the first two weeks of November, with the price moving into a three-month low yesterday.
Given the recent respect of trendline resistance, there is a strong chance we will see further downside from here. A break through trendline and $1466 resistance would be needed to negate the bearish trend that continues to play out.
Brent crude consolidation likely to resolve higher
Brent Crude is trading within a consolidation phase, with the price around the top of a symmetrical triangle formation. The upside we have seen in early hours is taking us back into the descending trendline that has capped gains over the course of the past week.
With that in mind, we are trading at a key junction, where a break through this area of resistance could bring a surge in Brent. Conversely, should this resistance level hold again, there is also a possibility of another leg lower from here. As such, many will want to wait for confirmation in either direction. Looking at the wider trend seen since early-October, there is a strong chance that this current period of consolidation is going to resolve with a break higher. As such, watch for a rise through $62.42 as a bullish breakout signal for Brent.
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