Technical analysis: key levels for gold and crude

Gold continues its period of consolidation, with sharp reversals seemingly a daily occurrence. Meanwhile, Brent has broken through a crucial resistance level, providing a bullish medium-term view.

Source: Bloomberg

Gold turning higher within triangle formation
Gold is pushing higher this morning, following a sharp move lower yesterday. This came off the back of a move into $1356 resistance, with the market clearly in a consolidation phase. This current move is coming off the back of a short-term support trendline and we could see this hold up.

Otherwise, a longer-term ascending trendline (currently $1337) would need to be broken for this current triangle pattern to come under pressure. Essentially, it seems better to be long on this market from the lower end of this consolidation pattern than short at the top.

This is owing to the wider uptrend that has been in place so far this year. Given that fact, the exit from this symmetrical pattern would be expected to come to the upside. However, the $1356 level clearly represents the number one resistance point for the time being.

Gold daily chart

Brent shows no signs of letting up
Brent rallied once more yesterday, breaking through the crucial swing high of $48.82. This is key as it now points towards a wider recovery for Brent. We have seen price pull back to this support level once more today, and this could provide us with a great base to push higher once more. As such, a bullish view is in place unless we see an hourly close below $48.03.

Brent daily chart

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