Gold price and Brent crude price break key resistance
Gold and Brent crude both break key resistance, but crude prices are starting to show signs of a potential short-term pullback.
Gold continues its ascent following bullish breakout
Gold managed to break through the $1765 resistance level yesterday, bringing about a fresh seven-year high for the precious metal.
We are now looking up towards the $1796 peak from 2012 as the next historical resistance level of note. With the price having respected that $1796 breakout level as new support, further upside looks likely, with a break from the recent trend of higher lows required to negate this bullish outlook (currently at $1765).
Brent crude heading lower after trendline break
Brent crude has been on the slide since yesterday’s peak, with the price dropping below trendline support.
Despite that bullish break through the $43.43 resistance, this decline could lead to a bearish phase if we continue to break key support levels. To the downside, watch $41.84 support as the first major level that could signal further downside if broken. While downside could come into play if we do break below near-term support, it is worthwhile noting that such weakness would be deemed to be short term in nature as the price retraces the rally from $37.13. To the upside, a break back through the $43.95 brings about a fresh bullish signal.
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