Technical analysis: key levels for gold and crude

Gold is looking to build on last week’s gains, while a pause in Brent looks like a precursor to further downside.

Gold breaking higher after recent pullback

Gold is heading higher once again, following a relatively minimal retracement on Friday and Monday.

This points towards a potential bullish break, with a move above $1243 in particular signaling a wider bullish outlook. For now though, we are looking towards $1237 as the near-term resistance level to watch, where a break above that level would signal a continuation of the rebound seen last week.

Brent continues to consolidate

Brent is pausing after the sharp decline seen last week. That wider bearish trend points towards further downside to come, with a break above $78 required to negate it.

As we move close to the descending trendline, there is a growing chance that we will see the pair engage with it before turning lower once more.

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