Technical analysis: key levels for gold and crude

Gold and Brent are both in consolidation mode. However, with gold at the bottom of recent declines and Brent at the top of a recent uptrend, could we see both markets turn around in opposite directions?

Gold continues to grind higher

Gold continues to consolidate, with the price seemingly forming a base from which we could see a projection higher in the near future. The decline of last week has provided us with a fall into both trendline support and the 61.8% retracement.

With trade issues rearing their head over in the US, we are seeing a shift into havens. While this hasn’t impacted gold much, there is a good chance we could build from this base and push higher. This could simply be a retracement, and as such, any sharp move higher would have the Fibonacci retracements to contend with. However, with the wider trend providing higher lows, there is also a good chance we could see a substantial rally very soon. A break below the $1288 mark would negate this bullish short-term view.

Brent sideways within uptrend

Brent has failed to create new highs this week, with the price trading largely sideways in a consolidation phase. That could mean we are due a pullback, but could also simply be a breather before we continue to rise once again.

The bottom Bollinger band has been a reliable indicator from a support perspective, and as such, any further downside should be looking at the Bollinger band and $78.12 for support. A break below $78.12 would signal a more bearish outlook coming into play. Until then, the bullish trend remains in place, where an hourly close above $80.44 provides a heightened chance of an upside continuation.

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