Technical analysis: key levels for gold and crude

Gold consolidation is expected to spark another leg higher, while Brent turns lower once more following a deep retracement.

Gold bars
Source: Bloomberg

Gold triangle points towards further gains

Gold is trading within a symmetrical triangle formation, following a sharp appreciation on Friday. This rally works in favour of our bullish short-term and medium-term outlook and as such, further gains are likely. Essentially, we are looking for an intraday close above $1352 for a bullish continuation signal.

Otherwise an hourly close below $1346 would point towards a deeper retracement, with $1344 and $1338 the next key support levels. 


Brent turns lower from deep retracement

Brent is in the process of reversing lower once more, following a rally into the 76.4% retracement. This downtrend has been remarkably consistent and as such, it is worthwhile remaining with the trend until we see anything to tell us otherwise.

As such, a bearish view remains for a move back below $42.52, with that outlook negated with an hourly close above $44.13.


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