Gold and Brent crude prices start to reverse higher
Gold and Brent crude start to rise, with recent declines at risk of reversing into a more bullish trend.
Gold starts to regain ground after recent pullback
Gold is breaking higher this morning, with the price rising through the $1596 resistance level after a period of consolidation yesterday. With stocks looking like they could be on the turn, a break through this area of resistance could bring gold back into play.
There is still the $1601 level to content with, with a break above that level adding greater credence to the notion that we are seeing a push back into a bullish trend once again. Conversely, a break back below the overnight low of $1582 would negate this current bullish move.
Brent rallies into key swing high
Brent has managed to break through trendline resistance this morning, with the price subsequently hitting the crucial $27.96 swing high. A break through that level would negate the recent downtrend and point towards a more bullish view coming into play.
As things stand, the 200-hour simple moving average (SMA) and $27.96 swing high are holding up, with the price starting to ease back. Thus, the forthcoming price action will be determined by whether we can break above this level or not. Given the wider downtrend that has been playing out, it is likely that we post some form of downside move, even if it is just a retracement.
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