Technical analysis: key levels for gold and crude

Both gold and brent are moving higher in a convincing manner. However, brent is on the cusp of a breakout or reversal and thus will be looking to set up the outlook for weeks to come.

Gold bars
Source: Bloomberg

Gold rallying towards key resistance

Gold has been rallying out of the 76.4% retracement area over the past two days, with a clear and consistent period of strength in play. Given the attraction to the $1357 area, there is a strong likeliness that we will see gold push higher towards the resistance level.

Ultimately the long-term view is bullish, and this short-term view corresponds with that outlook. 

Brent rallies major resistance level

Brent has seen another leg higher in this short-term recovery. Ultimately the biggest hurdle that needs overcoming is $48.82, which currently marks the high of the day. As such, the response to this level will dictate the state of play both for today and weeks to come.

As such, while price remains below $48.82, watch out for intraday bearish reversal signs. Alternately, an hourly close above this level could spark another leg higher for brent.  

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