Technical analysis: key levels for gold and crude

Gold and Brent both gain ground overnight, with gold hitting trendline resistance and Brent breaking out of a symmetrical triangle.

Oil platform
Source: Bloomberg

Gold rallies into trendline resistance

Gold has continued its ascent overnight, with the price rallying into a crucial long-term trendline, dating back to mid-2016.

Given the importance of that trendline, it makes sense to look for any potential signs of reversal here. In particular, an hourly close below $1274 would point towards a period of weakness. Until then, the uptrend remains.

Brent breaks higher from symmetrical triangle

Brent has finally shown its hand, with the price breaking higher from the symmetrical triangle formation that has been in play over the past fortnight. Given the break through $52.93, it looks like we could be set for further upside.

However, considering the wider, long-term picture, it makes sense to be weary of a potential bearish shift until we break above the $55.00 mark. A fall back below $51.82 would point towards a bearish move for Brent crude.

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