Technical analysis: key levels for gold and crude

Gold consolidation is likely to bring further upside, while both Brent and US crude trade within a clear symmetrical triangle formation.

Silver bars
Source: Bloomberg

Gold extends gains

Gold continues to rally from Wednesday’s trendline support and despite seeing a retracement lower overnight, there is a good chance we could see further gains today.

This morning’s failure to break above $1087 is a little of a worry, yet with price currently moving higher from $1079, this looks like a sideways consolidation more than anything.

Subsequently, while price remains above $1070, the bullish view remains.

Resistance levels to watch are at $1087 and $1100. Whereas a close below $1070 would then look towards $1064 as the next support level.

Gold

US crude symmetrical triangle

US crude is trading within a symmetrical triangle this week, in a clear showing of indecision in the markets.

As with any symmetrical triangle, the key here will be to expect it to hold until it finally breaks, at which point the hourly close above the first swing high or below the first swing low is key.

Thus a close above $42.35 would lead to a bullish view, where resistance levels of $42.59, $42.82, $43.03 and $43.25 come into view.

Alternately, a close below $41.25 would bring a bearish view, with the only notable near-term support level at $41.09.

US Crude

Brent triangle in play

Brent is also trading within a symmetrical triangle, yet in a less consistent form.

Given the fact that the peaks are not completely descending, a bullish view would come in the event of a close above $45.23, where $46.00 and $46.39 would be the next resistance levels.

Alternately, a close below $43.51 would provide a renewed bearish view, where the only near-term support level in view is $43.26.

Brent

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