Technical analysis: key levels for gold and crude

Commodities go their own way, with gold rallying heavily while Brent sharply deteriorating. Recent trends point towards this continuing to be the case.

Gold
Source: Bloomberg

Gold broke out sharply to the upside yesterday, working out particularly well for our bullish view. This marks the completion of the symmetrical triangle, and given that it has taken place in the direction of the wider prevailing trend, further gains seem likely.

As such, further gains are expected, with an hourly close below $1336 required to negate this view.

Gold chart

Brent continues to sell-off
Brent has once more sold-off heavily yesterday, with the failure to break back above $45.30 proving very telling as the FOMC helped lead another sharp decline in price.

There are no signs that this will subside for now and as such further losses are likely. In particular, an hourly close below yesterday’s low of $43.71 would be required to signal another leg lower.

Key resistance levels of note are $44.13 and $44.50, while we would need to see a break back above $45.30 to negate this downtrend. 

Brent chart

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