Technical analysis: key levels for gold and crude

Gold looks set for further upside, while crude continues to consolidate in the wake of the recent OPEC+ production cut.

Gold continues to gain ground amid recent recovery

Gold has been gaining ground over the past month, with the break through $1243 providing a wider bullish continuation signal.

With the price heading back into the previous high of $1250, a rally through that level would signal a likely continuation over the near term. As such, further gains look likely from here, with a break below the prior swing low required to negate this current short-term trend.

Brent turns lower from consolidation top once again

Brent crude has once again failed to break through the recent consolidation top of $63.60, despite the Organisation of the Petroleum Exporting Countries and included non-members such as Russia, Mexico and Kazakhstan, among others (OPEC+) decision to cut production in the first half (H1) of 2019.

With a descending trendline and horizonal resistance up ahead, we need to see some key levels broken to the upside if we are to start seeing the bulls come back into play. Until then, watch out for whether we respect the ascending trendline of support, with a break below $58.48 providing a bearish breakdown signal.

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