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Technical analysis: key levels for gold and crude

Gold is coming back into vogue, with signs of a bottom. Meanwhile, crude looks to have further downside despite gains early this week. 

Oil pump
Source: Bloomberg

Will Gold find support from $1200 mark?

Gold has managed to find a bid, following a move down to $1195 last week. Crucially, we have seen the price break through the key $1220 resistance level, forming a bullish falling wedge pattern since. This retracement is expected to resolve with a move higher, where an hourly close above $1205 would point towards another leg higher.

As such, it looks like we could be seeing some form of bottom here for gold, with an hourly close below $1195 required to prove the downtrend is back on. 

Is Brent finding support or just taking a breather?

Brent has been marginally gaining ground this week, following a sharp pullback into the 50% retracement of $51.30. Clearly looking at the four-hour chart, there is a downtrend in play here, which would only be negated with a push through $53.08.

Until then, there is a good chance we are seeing a short term breather before we turn lower once more. With that in mind, watch out for possible weakness as long as we remain below $53.08.

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