Technical analysis: key levels for gold and crude

Gold looks primed for a bullish breakout after recent consolidation, while Brent gains could prove short-lived given wider trend.

Gold testing top of triangle formation

Gold has been trading within a triangle formation over the past two weeks.

The breakout from this pattern is likely to come to the upside, with a rally through $1300 signaling the next leg higher. There is a possibility of a bearish turn from here given we have not seen a bullish breakout yet. However, unless we fall below $1276, it looks likely that we will resolve from this consolidation period with an upside move.

Brent gains could start to fade

Brent has been regaining some lost ground over recent trading days, with the price rising into a deeper retracement zone.

However, with the initial selloff breaking below trendline support, there is a good chance that we are going to turn lower before long to resume that move. A drop below $60.06 would provide a bearish confirmation signal for the near term.

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