Technical analysis: key levels for gold and crude

Gold looks set for further upside, with a clear bottoming out in play. Meanwhile, Brent is turning lower, although another move higher looks likely before long.

Oil pump
Source: Bloomberg

Gold breaking out of bottoming pattern

Gold has been breaking higher this week, with the price pushing above the $1284 level to provide greater confirmation of a bullish short-term reversal.

Watch out for a four-hour close above that level, to provide greater confirmation. The next major level to watch is $1291, followed by $1306. 

Brent retracement unlikely to last

Brent has been pulling back this week, set against the backdrop of a clear uptrend over recent weeks. Unless we move back below $62.15, a bullish outlook remains prudent.

That being said, the $62.15 swing low is a weak one, and thus the $60.00 mark could be a better marker to use. Watch out for an hourly close above $64.56 to provide confirmation that the trend is set to continue.  

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